Unlike investing in Indian markets, there is a limit to which mutual funds can invest abroad. At present, it is $7 billion, overall. Last week, this limit was nearly breached and SEBI ordered fund houses to stop accepting more money. Schemes investing in overseas-listed exchange traded funds (ETFs) can still accept flows. This is because there is a separate $1 billion limit ($300 million per fund house) for them. Only few MFs have so far used ETFs to invest in global markets, so there is still some headroom here. However, the mutual fund industry expects SEBI and RBI to enhance the $7-billion limit soon.