In a fresh development for international mutual fund investors, ICICI Prudential Asset Management Company has announced that it will suspend new inflows into 3 of its overseas schemes starting March 2, 2026. The decision follows the exhaustion of available limits under foreign investment caps set by the Reserve Bank of India.
The restriction applies to:
- ICICI Prudential US Bluechip Equity Fund
- ICICI Prudential Nasdaq 100 Index Fund
- ICICI Prudential Strategic Metal and Energy Equity Fund of Funds
The asset management company had resumed fresh subscriptions in these schemes in January 2026 after a long pause. However, the latest move signals that the remaining headroom under overseas investment limits has once again been fully utilised.
Under the new restrictions, the AMC has stopped accepting fresh investments through the lump sum route, including switches from other schemes. New registrations under Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and certain special facilities where these schemes are selected as target schemes have also been halted.
Existing systematic transactions registered before the cut-off date will continue. These will remain subject to the respective scheme documents and applicable regulatory guidelines.
Redemptions and switch-outs will not be impacted. Ongoing STP-Out and Systematic Withdrawal Plan (SWP) registrations will also continue without changes.
The fund house clarified that subscriptions may reopen if overseas investment limits become available or are enhanced, or if further regulatory clarification is issued.
The restrictions are linked to caps imposed by the Reserve Bank of India. The central bank limits the mutual fund industry’s total investment in foreign securities to $7 billion, along with an additional $1 billion for overseas exchange-traded funds. Since 2022, these caps have led several fund houses to suspend fresh inflows into international schemes.
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