SEBI halts investments in international ETFs: What should investors do?

The mandate

From April 1, 2024, SEBI has directed fund houses investing in international ETFs to stop accepting fresh inflows as the industry-wide limit of $1 billion has been exhausted.

So, what can investors do?

As mutual funds can no longer invest abroad, investors are left with three options

#1 Pause your international investments

Wait until fund houses start accepting international inflows again.

#2 Look for a domestic fund that still invests overseas

This may be difficult since they, too, may exhaust their limit within a few days.

#3 Invest in foreign ETFs directly

Brokerage platforms like Interactive Brokers and India INX allow you to invest in foreign securities directly.

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