Edelweiss Mutual Fund has announced a daily investment limit of ₹1 lakh per PAN for various transaction types, including lumpsum, switch-ins, SIPs, STPs, and other transactions, across seven funds. The restriction, which will take effect from February 27, 2025, applies to six international funds and one index fund.
Reason for the Limit:
The limitation has been introduced as the affected funds are approaching the overseas investment cap, which was set by the fund house on February 1, 2022. The cap applies to the proportion of investments in international assets, and this move aims to ensure compliance with the prescribed limits.
Details of the Restriction:
- The limit applies to any lumpsum, switch-in, SIP, or STP transaction.
- The limit of ₹1 lakh per PAN applies across all transaction types for the mentioned funds.
- Transactions reported before the cut-off time on February 25, 2025, will not be subject to this restriction, including switch-ins.
- Existing systematic transactions (like SIPs and STPs) will remain unaffected by this new rule.
Documentation Updates:
Edelweiss Mutual Fund also stated that they would update the relevant sections of the Scheme Information Document (SID) and Key Information Memorandum (KIM) to reflect the changes. This notice will be considered an integral part of these documents, overriding any conflicting provisions.
Other Terms:
All other terms and conditions of the SID, KIM, and Statement of Additional Information (SAI) will remain unchanged, according to the fund house’s notification.
This move is part of the fund’s strategy to manage its exposure to international markets, ensuring compliance with the regulatory investment caps and safeguarding the interests of existing investors.
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