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Indian mutual funds hit overseas investment cap, sidelined amid global rally
Indian mutual fund OFFs are constrained by overseas caps, blocking new investors despite global opportunity.
Several Indian fund-of-fund schemes are now unable to accept fresh investments into overseas assets after hitting regulatory caps.
The industry-wide aggregate limit of about US$7 billion, and individual fund limits typically around US$1 billion, mean that even as global markets rally, Indian investors seeking overseas exposure face a bottleneck.
Many schemes must now allow only redemptions until allocations free up, challenging portfolio diversification and international growth strategies at a time of strong global market momentum.