Edelweiss Mutual Fund has suspended new SIP and STP registrations for its international schemes effective July 10, 2026. This decision narrows investment choices for Indian investors as trailing one-year returns for many global mutual funds have seen a sharp decline.
Indian investors looking to diversify their portfolios through international mutual funds are facing a shrinking list of options. Effective July 10, 2026, Edelweiss Mutual Fund has stopped accepting new registrations for Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) across all its overseas schemes. This decision follows a period where many international funds have seen their one-year returns moderate significantly.
Global Funds See Return Moderation
The shift in performance is widespread, with data as of July 7, 2026, showing that 46 out of 51 analyzed international mutual funds reported a decline in their one-year returns compared to figures from early June. The drop in performance spans various themes, including funds focused on the US equity market, emerging markets, mining, clean energy, and electric vehicles.
For instance, the Nippon India Taiwan Equity Fund saw its one-year return adjust from 226.30% on June 2 to 154.63% by July 7, representing a significant shift over a short period. Similarly, the Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FoF experienced a drop of 45.36 percentage points in its one-year returns during the same timeframe. Such changes often reflect a broader recalibration of market valuations in the international indices these funds track.
Impact on International Diversification
Many Indian mutual fund houses have previously limited or paused fresh inflows into international schemes to stay within the industry-wide investment limits imposed by the Reserve Bank of India (RBI). When these limits are reached, fund houses often suspend new subscriptions to avoid breaching the prescribed caps on overseas investments.
Despite the current volatility and the suspension of new SIP registrations, some funds have maintained strong historical performance over the trailing one-year period. For example, the Edelweiss Emerging Markets Opportunities Equity Offshore Fund reported a one-year return of 64.56%, while the Edelweiss Greater China Equity Offshore Fund and the Franklin Asian Equity Fund recorded 51.44% and 46.99% respectively.
Investors currently holding existing SIPs in these Edelweiss overseas schemes may not be affected by the new registration suspension, but they should verify their specific fund status via official company portals. The primary monitorable for investors going forward remains the regulatory update on RBI investment limits, which dictates whether fund houses can reopen these international investment windows in the future.