Invesco Mutual Fund freezes new inflows into global funds as overseas limit nears

Invesco Mutual Fund has suspended subscriptions to its international schemes effective October 9, 2025, according to a notice-cum-addendum shared with unitholders. The decision impacts lumpsum purchases, switch-ins, and fresh registrations for Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), and IDCW Transfer Plans under its overseas schemes, referred to as the “Designated Schemes.”

The move follows regulatory guidelines allowing asset management companies (AMCs) to invest in overseas funds or securities only up to the available headroom without breaching the overseas investment limits set as of February 1, 2022.

However, investors will still be able to carry out switch-outs, redemptions, switches between plans/options of the same scheme, registration of fresh Systematic Withdrawal Plans (SWPs), and installments under existing SIPs or STPs registered before October 9. These will continue without disruption until further notice.

Invesco clarified that the suspension is temporary and will remain in force until the Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) increases the overseas investment limit, or until fresh headroom becomes available. All other terms and conditions of the affected schemes remain unchanged.

Meanwhile, Kotak Mutual Fund has also imposed a temporary suspension on lumpsum and switch-in investments in its Kotak Silver ETF Fund of Fund, effective October 10, 2025. The fund house attributed this move to the widening premium between domestic and international silver prices — a consequence of an acute supply shortage in India’s physical silver market.

According to Kotak, the silver premium has surged from 0.5% in early September 2025 to 5.7% as of October 9, with intraday levels briefly touching 12%. The current market reflects a 10% buying premium and a 3% selling premium, highlighting significant domestic price dislocation.

In a statement, Kotak Mutual Fund said, “Lumpsum and switch-in investments in the Kotak Silver ETF Fund of Fund will be temporarily suspended. Subscriptions will resume once the premium normalizes to acceptable levels. Existing SIPs and STPs remain active.”

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, reiterated on social media that the move is intended to protect investors from entering at inflated domestic prices, not a change in the fund’s positive long-term outlook on silver.

“Kotak Silver ETF, being a listed product, remains open for trading as usual,” Shah said. “Once the spot premium aligns with import parity, the Fund of Fund will reopen for new subscriptions.”

Kotak expects the domestic silver shortage — and the accompanying premium — to persist through October 2025, but maintains a constructive long-term view on silver as an asset class.

These back-to-back suspensions underscore the challenges mutual funds face in balancing regulatory ceilings and volatile commodity markets, as global and domestic dynamics continue to shape investor access and sentiment.