How much can Indian mutual funds invest overseas?

Lesson 40 of 50 for advisers · Overseas limits · 3 min read · Reviewed 13 Nov 2026

Quick answer

Up to US$7 billion for the industry and US$1 billion per fund house in overseas securities, and US$1 billion for the industry and US$300 million per fund house in overseas ETFs. A scheme may also invest in an overseas fund only if that fund’s exposure to Indian securities is 25% or less.

The industry may hold up to US$7 billion in overseas securities, with US$1 billion per fund house. Each fund house has US$50 million reserved within that.

Overseas ETFs have their own caps: US$1 billion for the industry and US$300 million per fund house.

An ongoing scheme may add up to 20% of its average overseas assets each month, within the caps. An NFO states its overseas amount, which holds for 6 months.

Since Nov 2024 a scheme may invest in an overseas fund only if that fund holds 25% or less in Indian securities.

Key idea: When the caps are close, fund houses may pause new money into international funds, as they did in 2022.

Sources

Try the short quiz on this page to check what stuck.

Common questions

What if an overseas fund goes above 25% India?

Six months with no new investment, then six months to sell. If it is still not fixed, the scheme stops taking money and charges no exit load.

How often is use of the limits reported?

Monthly, within 10 calendar days.

Does this affect an individual investing abroad directly?

No. That falls under the RBI’s Liberalised Remittance Scheme, with its own US$250,000 yearly limit.

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For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.