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Summary: More fund houses are stopping SIPs into their international funds, even for existing investors. It sounds worrying, but it doesn't mean overseas investing is over. This story explains what's happening behind the scenes and where investors can still find global exposure.
Two fund houses have announced they will stop existing SIPs in their global funds:
- PGIM India (from August 8): Global Equity Opportunities, Emerging Markets Equity, and Global Select Real Estate Securities.
- Edelweiss (from August 12): ASEAN Equity, Greater China Equity, US Technology, Emerging Markets Opportunities, Europe Dynamic, and US Value.
If you have a SIP running into one of these, the money already invested stays put; only future instalments stop, and you can still redeem or switch out.
They are not the first. Existing SIPs are already shut in 19 other international schemes, from houses like Invesco, Motilal Oswal, Axis, Kotak, HDFC and Mirae, with about 40 still running; these nine are on top of that. New registrations are harder still: only Baroda BNP Paribas Aqua still takes one.
The reason is the same everywhere. India caps how much its funds can invest abroad, a limit frozen since early 2022, and as foreign markets rise, house after house hits it.
One route stays open, though it draws on the same limit. Plenty of ordinary diversified funds, from Parag Parikh Flexi Cap to various technology and multi-asset funds, already hold foreign equity. We listed them, and how much each holds, in last week's edition.
The other route: ETFs, where the premium just cooled
The other way to add foreign equity is a global exchange-traded fund, or ETF, bought on the exchange, which we track every week. An ETF's market price can sit above the value of what it owns, its NAV, and that gap is the premium. Last week the US ETFs were near two-year highs. This week the premium dropped sharply.
How the ETF premium has moved
| Global ETF | 24-Jun | 01-Jul | 08-Jul | 15-Jul | 22-Jul | 29-Jul | 05-Aug |
|---|---|---|---|---|---|---|---|
| Motilal Oswal NASDAQ 100 | 24.5 | 19 | 18.9 | 18.3 | 18.3 | 24 | 17.4 |
| Mirae Asset NYSE FANG+ | 23.8 | 17.4 | 19.4 | 16.8 | 20.1 | 23.6 | 15.7 |
| Mirae Asset S&P 500 Top 50 | 22.5 | 18.5 | 20.6 | 17.7 | 18.9 | 23 | 18 |
| Motilal Oswal Nasdaq Q50 | 21.5 | 18.3 | 21.6 | 19.8 | 18.3 | 22.7 | 18.5 |
| Mirae Asset Hang Seng TECH | 21.9 | 17.8 | 15 | 17.6 | 22 | 16.3 | 18.8 |
| Nippon India Hang Seng BeES | 12.8 | 14.6 | 9.3 | 7.2 | 5.4 | 5.3 | 5.1 |
| Premium as a percentage (%) over NAV, on the last NSE data only. | |||||||
The Motilal Oswal NASDAQ 100 ETF went from a 24 per cent premium on July 29 to 17.4 on August 5; FANG+ fell from 23.6 to 15.7. This was not buyers baulking at the price. Over the same days, the funds' US holdings rebounded; the NASDAQ 100 ETF's NAV rose about 8 per cent, while its market price barely moved, so the NAV caught up and the gap closed from below. Trading was lighter through the week, not heavier. This was the fund's value catching up, not a rush for the exit.
Here is where each fund stands now. After the fall, most no longer look dear against their own record: FANG+, the S&P 500 and Hang Seng TECH all sit just below their one-year average premium, where a week ago every US fund was above it.
Global ETFs: where the premium stands
| Global ETF | NAV (Rs) | Price (Rs) | Premium now (%) | 52-wk avg premium (%) | 52-wk premium range (%) | 52-wk avg daily trading (Rs cr) |
|---|---|---|---|---|---|---|
| Motilal Oswal NASDAQ 100 | 274.16 | 321.82 | 17.4 | 9.3 | −3.0 to 27.7 | 23.4 |
| Mirae Asset NYSE FANG+ | 171.92 | 198.96 | 15.7 | 19.7 | 11.8 to 30.1 | 5.42 |
| Mirae Asset S&P 500 Top 50 | 67.12 | 79.23 | 18 | 19.4 | 14.5 to 23.7 | 1.59 |
| Motilal Oswal Nasdaq Q50 | 120.24 | 142.52 | 18.5 | 13 | −1.7 to 26.4 | 1.43 |
| Mirae Asset Hang Seng TECH | 20.11 | 23.89 | 18.8 | 19.5 | 12.4 to 36.4 | 2.54 |
| Nippon India Hang Seng BeES | 465.76 | 489.41 | 5.1 | 15 | 3.4 to 25.6 | 8.83 |
| NAV, price and premium as of August 5, 2026. NSE data only. | ||||||
The premium is extra you pay over what a fund owns, and it swings. Last week's near-record reading has already unwound. Pay a high premium on any given day and you are betting on which way it moves next, which no one can call.
New SIPs into global funds are all but shut, some existing ones are paused, and the ETF price swings. Foreign equity is still within reach, though, inside funds you may already own and through ETFs if you want more. Which route suits you, and whether a fund is worth holding, is the real question. That is what the Value Research Fund Advisor answers: it shows the foreign equity already inside your funds and tells you plainly whether one is worth buying and holding for your goals.
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