Why were MFs allowed higher foreign limits?
Jun 07, 12:06

Last week, SEBI enhanced limits of investing abroad for mutual funds. This was the second time in under a year that it raised the limits. In fact, ever since it raised this limit in November 2020 after a gap of 12 years, these funds' assets almost doubled. Fund houses have regularly launched international funds over the past year as the US markets have done well. Investors, too, are warming up to global diversification. Tightening of MF regulations have also limited the scope of new launches in domestic fund categories, but MFs are free to launch multiple fund of funds and ETFs—two of the popular routes used by most fund houses to invest abroad.

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