India Funds Hit Investment Cap

PGIM India Mutual Fund has announced significant, albeit temporary, restrictions on subscriptions for three of its international funds. These include the PGIM India Global Equity Opportunities Fund of Fund, the PGIM India Emerging Markets Equity Fund of Fund, and the PGIM India Global Select Real Estate Securities Fund of Fund. The restrictions are set to take effect from March 10, 2026.

This decision stems from the need to avoid breaching the designated overseas investment limits. Consequently, any transactions received after the cutoff time of March 9, 2026, will not be accepted or processed for these specific international funds. This measure is a crucial step to ensure compliance with regulatory caps on foreign investments.

However, the fund house has clarified that existing Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) that were in place as of March 9, 2026, will continue to operate without disruption. Additionally, intra-scheme switches, intra-plan switches, switch-outs, redemptions, and new or existing Systematic Withdrawal Plans are unaffected and will proceed as normal.

This is not the first time these funds have experienced such limitations. Subscriptions were previously reopened on February 5, 2026, with a daily limit of Rs 5 lakh. Prior to that, on December 10, 2025, subscriptions were temporarily suspended for the same reason – to prevent breaching overseas investment limits. These measures align with SEBI's directives from June 17, 2022, allowing mutual funds to invest in overseas instruments up to available headroom.