AMFI Renews Push to Raise $7 Billion Overseas MF Cap as Decade-Old Limit Bites
Updated
Updated · Mint · Jun 28
AMFI Renews Push to Raise $7 Billion Overseas MF Cap as Decade-Old Limit Bites
1 articles · Updated · Mint · Jun 28
Summary
AMFI plans to again ask the RBI, government and Sebi to raise the $7 billion overseas investment ceiling for mutual funds after the current FCNR(B) deposit window closes.
The industry says the cap, unchanged for more than 10 years, has blocked global diversification and forced several fund houses to halt or curb inflows into international schemes after the limit was exhausted.
Strong gains in US and Asian markets—especially AI-linked stocks—have sharpened the case, while AMFI argues a steadier rupee and recent steps to boost foreign-exchange inflows give policymakers room to revisit the ceiling.
AMFI also says overseas mutual fund investments differ from the $250,000-a-year LRS route because scheme proceeds are eventually redeemed back into India, and some inflows come from NRIs.
The lobbying push comes as the industry manages softer demand—May equity mutual fund net inflows fell 40% to ₹22,908 crore—yet assets under management still stood at ₹81.58 lakh crore and household penetration remains low.