Home / Mutual Funds / Motilal Oswal MF stops lump sum investment into 3 funds

Motilal Oswal Asset Management Co. has suspended lump sum investments and switch-in of money into its S&P 500 Index Fund, Nasdaq Fund of Funds (FoF), and Motilal Oswal EAFE Top 100 Select Index Fund.

The asset management company (AMC) has taken action after it neared the market regulator’s overall $1 billion investment limit in foreign stocks. According to a person aware of the matter, the AMC is close to the Securities and Exchange Board of India (Sebi) limit but is left with some leeway. Hence existing and fresh Systematic Investment Plans (SIPs) have not been stopped.

The stoppage will take effect on 17 January. The stoppage is likely to be temporary as the regulator will likely hike the limit soon, the person said, requesting anonymity.

Motilal Oswal NASDAQ ETF has delivered an average annual return of 24.85% since its launch in March 2011. Motilal Oswal Nasdaq 100 FoF feeds into the Nasdaq ETF. Motilal Oswal S&P 500 Index Fund was launched in April 2020. It has delivered 30.62% since its launch. The two funds have assets under the management of 6,273 crore and 2,737 crore, respectively. Motilal Oswal MSCI EAFE Top 100 Select Index Fund was launched in December. It focuses on developed markets outside the US.

In November 2020, Sebi raised the foreign investment limit per fund house from $300 million to $600 million, and in June last year, the regulator further increased the limit to $1 billion per fund house.


Neil Borate

Neil heads the personal finance team at Mint. A former colleague called them 'money nerds' and that's what they are. They cover topics like mutual funds, taxation and retirement, all to improve your chances of building wealth. Neil graduated with a degree in law and economics. He passed the CFA Level I exam and began his writing career at Value Research, a mutual fund research firm in 2016. He joined the personal finance team Mint in 2019. Everyday, the Mint Money Team tackles personal finance questions such as where to invest and where to borrow, through articles, charts and reader queries. They also have a daily podcast - 'Why Not Mint Money' and an annual ranking of mutual funds - the Mint 20.
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