Buying the world at a premium

Summary: Over a few days this July, three fund houses shut 11 international funds to new SIP registrations. The list that was open last week has effectively closed. What remains is a different kind of decision.

Summary: Over a few days this July, three fund houses shut 11 international funds to new SIP registrations. The list that was open last week has effectively closed. What remains is a different kind of decision. For years, a rupee international fund was the easy way to own a slice of the world. Over a few days this July, three fund houses shut 11 of the funds we track to new SIP registrations. Only Baroda BNP Paribas Aqua is still open as we write, and even its future is uncertain. Two routes remain. The exchange-traded fund is now the main way in, though you pay a premium. The Liberalised Remittance Scheme lets you invest abroad directly, but the paperwork makes it cumbersome. For most, the ETF path is easier. Why the shelf emptied One limit sits behind it all. SEBI and the RBI cap the industry at $7 billion of foreign securities, with a separate $1 billion for overseas ETFs. The industry hi