While SEBI has allowed domestic mutual funds to invest in overseas funds, the cap set by the RBI for such funds could defeat the purpose of the market regulator’s move.
If you are an avid investor in the stock market, you would understand how important diversification is for your investment portfolio to mitigate risk and volatility. Now the market regulator has some good news for you.
The Securities and Exchange Board of India on Monday announced that domestic mutual funds are now allowed to invest in overseas mutual funds and unit trusts. The industry has largely welcomed SEBI’s move as it is set to bring transparency and enable diversification in overseas investments.
Meanwhile, experts believe that it could be too soon to celebrate. The industry-wide limit of $7 billion for …
Disha is a writer at The Morning Context. She has previously worked at the digital production desk of Reuters. Prior to that, she was a sub-editor at Deccan Herald.
Writer
disha@mailtmc.com
Bengaluru