HSBC Mutual Fund has announced a temporary suspension on fresh subscriptions in its three International schemes, effective from August 26, 2026. According to reports from HSBC Mutual Fund, this suspension applies to all fresh lumpsum subscriptions, switch-ins, and new registration for SIPs, STPs, and IDCW Transfer Plans across these schemes. The suspension specifically targets new investors seeking to enter these schemes while maintaining existing investment continuity for current investors. As reported by HSBC Mutual Fund, these schemes had reopened on August 18, 2026, making them the last international funds accepting new investors before the latest suspension.
Despite the suspension, existing SIPs, STPs, and IDCW Transfer Plan will continue to be processed as normal. As reported by HSBC Mutual Fund, this means that current investors' ongoing investments will not be affected by the temporary halt on new subscriptions. The suspension specifically targets new investors seeking to enter these schemes, ensuring that existing investors' investment continuity remains uninterrupted during the suspension period.
The suspension does not affect several key investment operations that will continue as usual. According to HSBC Mutual Fund, redemptions, switch-outs, switches between plans/options, and SWP registrations will continue without interruption during the suspension period. This ensures that existing investors can maintain their investment activities without disruption, providing them with flexibility to manage their portfolios as needed.
The suspension stems from SEBI's overseas investment limit caps, which restrict each fund house to the overseas exposure held on February 1, 2022, when the industry hit its USD 7 billion ceiling. As reported by market experts, 25 of the 60 international funds have frozen even the instalments of SIPs registered earlier, with none currently open to new registration. Current investors have several alternative routes available, including domestic equity funds with overseas exposure, the Liberalised Remittance Scheme (LRS) allowing up to USD 2,50,000 annually, and GIFT City funds under the International Financial Services Centres Authority (IFSCA), which operate outside the 2022 SEBI limits but typically require minimum investments of USD 5,000 (approximately ₹4.8 lakh).
