PPFAS (PPFA MF) mutual funds will reopen the Parikh Flexicap Fund for fresh flow from March 15.

The funds stopped receiving fresh currents after the Securities and Council of India (SEBI) had directed home funds not to invest additional funds in the foreign stock market, because the foreign investment limit permitted by the Bank of India (RBI) reserves close to violated.

Because foreign boundaries have not been improved, fresh flow must be deployed to domestic stocks. This can change the composition of Parig Parik’s flexicap funds from time to time.

“For now, 28-29 percent of our scheme portfolios are in foreign shares. If the limit is not upgraded and we doubled our AUM from Rs 20,000 Crore to Rs 40,000 Crore, our exposure to foreign shares will drop to 14-15 percent,” said Neil Parikh, Chief Executive PPFAS MF.

“Increasing the limit can take longer than our expectations, given the global uncertainty because of the Russian-Ukrainian war, depreciation of rupees and fiis take money. On the other hand, there will be investment opportunities in the domestic stock market after the recent correction we have seen , “he added.

As a diverse equity fund that has around 65 percent of its investment in the domestic stock market and about 28 percent in international stocks (balance adhering to cash), Parig Parikh flexibap funds allows flowing through existing customs, but investing it into a fair domestic stock. .

Why are restrictions in law?

The overall industrial limit of $ 7 billion to invest in foreign stocks and mutual funds is almost exhausted.

However, some international funds in this industry are not affected when they invest in exchange funds traded abroad (ETF).

There is a separate $ 1 billion limit to invest ETF for mutual funds. Within this overall limit, the rules of which allowed $ 300 million (Rs 2,250 Crore) per house for funds to invest in overseas ETFs.