Motilal Oswal Re-Opens Investing Option For Overseas Mutual Funds

view original post

Motilal Oswal Asset Management Company (AMC) has announced that it will start accepting new investments into the Motilal Oswal S&P 500 Index Fund, Motilal Oswal Nasdaq 100 Fund of Fund and Motilal Oswal MSCI EAFE Top 100 Select Index Fund.

Retail investors can start investments from December 1, 2022. The AMC will accept lump sum investment of up to Rs 2 lakh for each Permanent Account number (PAN), per month and per scheme.

That said, the fund house will resume investing options, such as systematic investment plan (SIP) and systematic transfer plan (STP), too.

If investors choose STP, they can transfer money from any other scheme to these schemes within the same fund house. However, switch-in applications are also allowed, which will allow investors to transfer funds from one scheme to another, when requested.

In February 2022, the Securities and Exchange Board of India (Sebi ) had advised mutual funds to put a halt on investment for international funds, to steer clear of any breach on the investment limit set by the said regulatory body in June 2021.

According to the Sebi circular, the overall industry limit was set at $7 billion and $1 billion per fund house. In June, The Association of Mutual Funds of India (AMFI) notified fund houses that they can resume the overseas fund investments without breaching the limit set by Sebi.

As of November 23, 2022, Motilal Oswal S&P 500, Motilal Oswal Nasdaq 100 Fund of Fund and the Motilal Oswal MSCI EAFE Top 100 Select index Fund, are all down by 5.36 per cent, 20.33 per cent, and 1.42 per cent, respectively.

The Motilal Oswal Nasdaq 100 Fund of Fund has Rs 5,033 crore worth of assets under management (AUM), the highest AUM among the three oversees funds.

The net asset value of (NAV) of Motilal Oswal Nasdaq 100 Fund of Fund is Rs 20.3, while the NAV of Motilal Oswal S&P 500 index fund is Rs 14.9.

The Reserve Bank of India’s liberalised Remittance Scheme (LRS) allows an Indian individual to invest up to $2.5 lakh, which is approximately Rs 2 crore, in foreign stocks. This limit applies to all international expenses. Profits from the sale of assets, which are held for less than 24 months are taxed as short-term capital gain, and are taxed at the requisite slab rate.