Kotak Mutual Fund has resumed subscription through lump sum or switch-in transactions in Kotak Nasdaq 100 Fund of Fund with effect from Tuesday, the fund house said in a notice.
Kotak Nasdaq 100 Fund of Fund is an open-ended scheme investing in units of overseas exchange-traded funds and/or index fund based on the Nasdaq 100.
Several mutual funds with investments in overseas equity had halted fresh subscriptions, after the Reserve Bank of India decided not to revise industry-wide limits on such investments. However, in June last year, the Securities and Exchange Board of India had stated that mutual funds would be allowed to start accepting fresh investments in overseas funds, as long as they stay within the limits set as of Feb. 1, 2022, without exceeding the allowed overseas investment limits at mutual fund level.
"The total utilization of the overseas investment limit shall remain capped at the amount as of EOD of February 01, 2022, in order to ensure compliance with the SEBI directive," Kotak Mutual Fund said in a release.
Redemptions in such schemes generally result in the creation of some headroom for mutual funds and reopening subscriptions has now become a standard practice.
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