Conceptual · Article 1.2.1.5

Global Equity Feeder Funds.

Q: Can I invest in a global equity feeder fund right now (FY 2025-26)?

As of February 2026, the RBI and SEBI have not raised the industry-wide overseas investment limit of USD 7 billion. Many funds remain largely restricted. Some AMCs periodically open small windows for fresh SIPs or lump-sum investments as headroom becomes available from redemptions. Always check directly with the fund house or AMFI's website — the position can change month to month.

Q: How is this different from the LRS route?

LRS lets you remit up to USD 250,000/yr (~₹2 crore) and invest directly in foreign stocks or funds — direct ownership, but foreign currency, foreign tax compliance, and 20% TCS above ₹10 lakh per FY (effective April 1, 2025). A feeder fund has zero TCS, simpler compliance, and is handled entirely in rupees — but faces regulatory access constraints and carries two cost layers.

Q: What happens to my feeder fund money if the rupee crashes?

If the rupee weakens sharply against the dollar (USD/INR moves from 84 to 90), the same dollar amount in your overseas master fund becomes worth more rupees. NAV in rupee terms rises. But this is a side effect of foreign currency exposure, not a deliberate hedge. In a real economic crisis, equity prices often fall alongside currency weakness, partially offsetting the benefit.

Indian Fund Channels to a Single Overseas Master. Slab-Rate Tax Trap.

Published as on 28 May 2026

A Global Equity Feeder Fund is an Indian SEBI-registered mutual fund that channels almost all its money into a single overseas master fund — Franklin US Opportunities, Schroders International, BlackRock World Equity, and similar. You invest in rupees through your familiar platform; your money effectively travels abroad. Two cost layers: feeder ER 0.1-0.7% + master ER 0.5-1.2%. The critical tax change: investments made on or after April 1, 2023 are taxed at your slab rate regardless of holding period — no LTCG benefit, no 12.5% rate, no holding-period unlock. Buying via Indian feeder attracts zero TCS — vs 20% above ₹10 lakh on the direct LRS route.

Slab Rate

Post-April 2023 Tax

0% TCS

Vs 20% on LRS > ₹10L

2 Layers

Feeder + Master Cost

$7 B

SEBI Industry Cap

Executive Summary · Page 2

Executive Summary · 6 Findings

Feeder funds are a two-layer pass-through: Indian unit → single overseas master fund → global stocks. They give Indian investors genuine economic exposure to global equity wrapped in a domestic package — no LRS, no foreign brokerage, zero TCS. But the post-April 2023 tax trap means slab-rate tax always, regardless of holding period.

This article covers the feeder structure, the three return drivers (master fund + currency + cost), the post-April 2023 vs pre-April 2023 tax split, the TCS advantage over LRS, the SEBI $7B access constraint, three misconceptions to drop, and where feeder funds belong in your portfolio.

Key Findings

Pass-through structure: Indian feeder → single overseas master → global stocks.

You → Indian SEBI-registered feeder (e.g., Mirae Asset, Franklin India) → single overseas master fund (e.g., Franklin US Opportunities, Schroders International, BlackRock World Equity) → Apple, Microsoft, Samsung, Nestlé. The Indian AMC does NOT pick stocks — strategy lives with the global manager. Domestic operational wrapper; genuine international economic exposure.

Three return drivers: master fund + currency + cost layering.

Master fund performance is the biggest driver. Currency: rupee weakens 3% on a 10% USD master return → ~13% INR; rupee strengthens 3% → ~7% INR. Cost: feeder ER 0.1-0.7% (Direct) + master ER 0.5-1.2% — typically ~0.9% combined for modern passive feeders. Net = master ± currency − cost ± tracking difference.

The post-April 2023 tax trap: slab rate always, no LTCG benefit.

Feeder funds invest <35% in Indian equity, classified as "Specified Mutual Funds." For investments made on or after April 1, 2023: ALL gains taxed at your slab rate (5%, 20%, or 30%) regardless of holding period. No 12.5% LTCG rate. No 24-month holding-period unlock. No ₹1.25 lakh exemption. Whether you hold 1 year or 10 years — same slab rate. Plan returns with your full income tax bracket in mind.

Pre-April 2023 grandfathering: 12.5% after 24 months for older units.

Units purchased before April 1, 2023 follow the older rule: slab rate within 24 months, 12.5% flat beyond 24 months (no indexation) for redemptions after July 23, 2024. The 24-month long-term threshold only helps if the purchase date is pre-April 2023. A 30%-bracket investor with ₹1.5L LTCG on grandfathered units pays ₹18,750 vs ₹45,000 on equivalent short-term — more than half savings.

Zero TCS advantage: feeder route vs LRS direct.

Indian feeder fund purchases attract NO TCS — no upfront cash-flow blockage. LRS direct route (foreign brokerage): 20% TCS on aggregate LRS remittances above ₹10 lakh per FY (effective April 1, 2025). TCS is advance tax credit, claimable in ITR — but it ties up capital for up to a year. For investors deploying ₹10 lakh+ annually, the TCS-free feeder route saves real cash flow even when the final tax is similar.

Access is constrained: $7B SEBI cap, $1B ETF sub-limit, both exhausted.

As of February 2026, SEBI/RBI's industry-wide overseas investment limit remains USD 7 billion (with a separate USD 1 billion sub-limit for overseas ETFs). Both have been exhausted. Many feeder funds remain largely restricted from accepting new investments. Some AMCs periodically open small SIP/lump-sum windows as headroom opens from redemptions. Check directly with the fund house or AMFI (amfiindia.com) — status changes month to month. T+3 to T+4 redemption settlement vs T+2 domestic.

At A Glance

Metric	Value	Detail
Structure	Pass-Through	Indian feeder → single master fund
Cost Layers	2	Feeder ER + master ER
Modern Combined ER	~0.9%	Direct plan; passive feeder
Post-Apr 2023 Tax	Slab Rate Always	No LTCG benefit, any holding period
Pre-Apr 2023 LTCG (>24mo)	12.5%	Grandfathered, no indexation
TCS via Feeder	Zero	vs 20% > ₹10L on LRS
Schedule FA	Not Required	Indian unit, not foreign asset
Settlement	T+3 to T+4	vs T+2 for domestic equity

Exhibit 01: Same Master Return — Two INR Outcomes

Scenario	Master USD	Net INR
Rupee weakens 3%	+10%	~12.1%
Rupee flat	+10%	~9.1%
Rupee strengthens 3%	+10%	~6.1%

Same master fund. Same stock-market performance. Net of ~0.9% combined cost. Currency does the rest — and currency is unpredictable.

The Opening · Page 3

The Opening

Imagine you want to invest in a famous restaurant in New York, but you live in Mumbai. You cannot walk in directly. A local agent in Mumbai collects your money, pools it with others, and sends it to that New York restaurant on your behalf. That local agent is the feeder fund. The New York restaurant is the master fund. You never touch foreign markets, but the food on your plate is genuinely from New York.

"You never directly touch foreign markets. You never need a foreign brokerage account. Everything happens within the familiar Indian mutual fund system. The Indian AMC does NOT pick individual foreign stocks — that decision belongs entirely to the overseas master fund manager. Pure distribution on the Indian side; pure strategy on the foreign side."
The Pass-Through Structure

Why this two-layer architecture exists: Indian AMCs may not have deep global research capabilities, whereas global managers like Schroders, BlackRock, or Franklin Templeton have dedicated teams tracking international markets full-time. The Indian AMC's job is purely distribution: collect rupees, route capital internationally, manage local compliance. The master fund's job is alpha. You get world-class international management without needing a foreign account.

Genuine international exposure in a domestic package. Your economic exposure is real — when Nasdaq moves, your fund moves. When the dollar strengthens against the rupee, your INR returns are typically boosted. But the operational structure is fully domestic — you invest in rupees, redeem in rupees, file under Schedule CG (capital gains), not Schedule FA (foreign assets). No LRS account. No foreign tax compliance. Just an Indian mutual fund unit.

The Critical Tax Distinction: Investments made on or after April 1, 2023 — which covers nearly all new investors today — are classified as "Specified Mutual Funds" under the Finance Act 2023 framework. All gains are taxed at your slab rate regardless of holding period. There is no LTCG benefit, no 12.5% rate, no holding-period unlock. Plan your expected after-tax return with your full income tax slab rate in mind — not a special capital gains rate.

Structure

Part I

Pass-Through Structure, Three Return Drivers, Cost Math

Part II

The April 2023 Tax Trap, Grandfathering, TCS Advantage

Part III

Access Constraints, Risks, and Three Misconceptions

Part IV

The Verdict: Domestic Wrapper, Foreign Exposure

What These Funds Are

✓ Indian unit, foreign economic exposure

✓ SEBI-regulated, no LRS or FA

✓ Zero TCS at purchase

✓ Access to specialist global managers

What They Are NOT

✕ LTCG-friendly for new investors

✕ Safer than Indian equity

✕ Single-layer cost

✕ Always available for new investment

Part I

Pass-Through Structure, Three Return Drivers, and Cost Math

The flow from your SIP to a global stock, the three forces that determine what you actually earn in rupees, and the two-layer cost reality that compounds over decades.

Part I: Structure & Returns · Page 4

The Money Flow

Four-Step Pass-Through

(1) You invest ₹ via SIP or lump sum.
(2) Indian feeder fund (SEBI-registered AMC — Mirae Asset, Franklin India, etc.) collects, handles compliance, routes capital internationally.
(3) Overseas master fund (Franklin US Opportunities, Schroders International, BlackRock World Equity) selects stocks per its strategy.
(4) Global stocks (Apple, Microsoft, Samsung, Nestlé, ASML).

Indian AMC does NOT pick individual foreign stocks. Strategy lives with the global manager. Pure distribution on the Indian side; pure strategy on the foreign side.

Three Return Drivers

Master fund performance

Biggest driver. Master fund rises 15% in USD → feeder broadly tracks that before costs. Falls 20% → feeder falls similarly. No alpha from the Indian feeder — only tracking.

Currency movement (INR vs foreign currency)

Rupee weakens 5% on a 10% USD return → ~15% INR. Rupee strengthens 5% → ~5% INR. Over 3-7 year holding periods, currency can materially change INR earnings. Not a footnote — a separate engine.

Two-layer cost

Feeder ER (Direct): 0.1-0.7%/yr. Master ER: 0.5-1.2%/yr. Combined ~0.9% for modern passive feeders (lower than the 2% legacy range). Direct plan vs Regular plan saves ~0.75-1.0%/yr — compounds to 10-15% of final corpus over 10 years.

Approximate formula: Your return ≈ Master fund return ± Currency movement − Total layered cost ± Tracking difference. Four moving parts. Three are not under your control. The one you control: choosing Direct over Regular plan.

Currency Cost Math — ₹X at 10% Master Return

Scenario A — Rupee Weakens 3%

USD return 10% + currency boost ~3% = ~13% INR. Minus combined cost ~0.9%. Net ~12.1%/yr. The historical Indian-investor tailwind in action.

Scenario B — Rupee Strengthens 3%

USD return 10% − currency drag ~3% = ~7% INR. Minus combined cost ~0.9%. Net ~6.1%/yr. Same master fund, same stock performance. Currency cut nearly half the gain.

The Cost Differential Compounds

Plan Type	Combined ER	10-Year Drag
Direct Plan	~0.9%	Baseline
Regular Plan	~1.9%	~10-15% of corpus

Over 10 years, a 1% annual cost difference can reduce your final corpus by 10-15%. On ₹10L at 10% gross, that's roughly ₹2.5-3L of foregone wealth simply from the plan choice. Direct plans are not a marginal optimisation — they are the easiest large lever in a feeder fund decision.

What's Realistic to Expect

Performance closely tracks the master fund, minus costs. Currency adds volatility separate from stock-market volatility. Returns may differ from Indian markets — sometimes better, sometimes worse. NOT realistic: outperforming the master (no alpha from feeder layer), reduced volatility (global equity is still equity), currency "cancelling out" with certainty, zero tracking difference.

Part II

The April 2023 Tax Trap, Grandfathering, and the TCS Advantage

Why the date of investment matters as much as the holding period, the grandfathered pre-April 2023 carve-out, and the structural cash-flow advantage of the feeder route over LRS.

Part II: Tax & TCS · Page 6

The April 1, 2023 Split

Post-April 2023: Slab Rate Always

Feeder funds invest <35% in Indian equity → classified as "Specified Mutual Funds" under Section 50AA. For investments made on or after April 1, 2023, ALL gains taxed at your slab rate (5%, 20%, or 30%) — regardless of holding period.

No 12.5% LTCG rate. No 24-month unlock. No ₹1.25 lakh exemption. Whether you hold 1 year or 10 years — same slab rate.

Priya — Post-April 2023 Investor

Salaried, ₹15L income (20% slab). Invests ₹5L in June 2024. Holds 3 years. Gain ₹2L.

Tax: ₹2L × 20% = ₹40,000 (plus cess). No holding-period benefit regardless of how long she stays.

Pre-April 2023: Grandfathered

Units purchased before April 1, 2023 follow the older rule: slab rate within 24 months; 12.5% flat beyond 24 months (no indexation) for redemptions after July 23, 2024. The 24-month long-term threshold only helps pre-April 2023 purchases.

Ravi — Pre-April 2023 Investor

Salaried, ₹18L income (30% slab). Invested ₹5L in January 2023. Redeems March 2025 (~26 months). Gain ₹1.5L.

Tax: 12.5% × ₹1.5L = ₹18,750 (~₹19,500 with cess).

If redeemed at 18 months (short-term): 30% × ₹1.5L = ₹45,000. Holding the extra 6 months saved ₹25,500.

Pre/Post July 23, 2024 Nuance (Pre-April 2023 only)

Sold before July 23, 2024 — could elect 20% with indexation OR 12.5% flat, whichever lower.

Sold on or after July 23, 2024 — only 12.5% flat. Indexation no longer available.

The TCS Advantage

Zero TCS via Feeder

Buying a global equity feeder fund in India attracts zero TCS — no advance cash-flow blockage, no upfront deduction. From April 1, 2025, LRS direct remittances above ₹10 lakh per FY attract 20% TCS on the excess. TCS is an advance tax credit, recoverable in ITR — but it blocks cash flow for up to a year.

Feeder vs LRS Direct Comparison

Feature	Indian Feeder	LRS Direct
TCS	Zero	20% > ₹10L
Foreign Account	No	Yes
Compliance	SEBI / ITR	FEMA + Schedule FA
Limit	Fund headroom	USD 250K/yr (~₹2 cr)
Cost Layers	Two	One (direct)
Settlement	T+3 to T+4	Varies
Tax on Gains	Slab rate (post-Apr 2023)	Slab rate (most cases)

The TCS advantage is real — especially for investors deploying ₹10 lakh+ annually. The compliance simplicity is the other major edge: no foreign brokerage account, no Schedule FA, no FEMA reporting, no foreign tax filings.

Other Tax Notes

No ₹1.25L LTCG exemption — Section 112A applies only to equity-oriented domestic funds (≥65% Indian equity).

IDCW — distributions added to total income, taxed at slab rate regardless of purchase date.

Schedule FA — NOT required. Your holding is in an Indian SEBI-registered fund. Report gains under Schedule CG.

Part III

Access Constraints, Risks, and Three Misconceptions

Why the $7B SEBI cap blocks many investors right now, the full risk map, the structural difference between feeder and direct global funds, and the three misconceptions that lead to disappointment.

Part III: Access, Risks & Misconceptions · Page 8

SEBI/RBI Access Constraint

The $7B Industry Cap (Feb 2026)

As of February 2026, the RBI and SEBI have not formally raised the industry-wide overseas investment limit of USD 7 billion. A separate USD 1 billion sub-limit for overseas ETFs has also been exhausted. Many feeder funds remain largely restricted from accepting new investments.

Some AMCs periodically open small windows for fresh inflows — SIPs and lump sums — as headroom becomes available from existing redemptions. Windows are intermittent and not predictable.

Before investing, check directly with the fund house or AMFI's website (amfiindia.com). The status can change month to month.

Settlement Timeline

Domestic equity funds settle on T+2 working days.

Global feeder funds typically take T+3 to T+4 — the Indian AMC must redeem from the overseas master, and international cycles are longer. Plan accordingly if you need funds on a specific date.

Full Risk Map

Risk	Present?
Global Equity Market Risk	Yes
Currency Risk	Yes
Concentration (Master Strategy)	Depends
Domestic India Risk	Minimal
Structural / Routing Risk	Low
Regulatory Access Risk	Significant
Tax Rate Risk	Real (slab rate post-Apr 2023)

Feeder vs Direct Global Fund

Feeder: Overseas master fund picks stocks. Two cost layers. Master fund visibility depends on its disclosure.

NDDirect global fund: Indian AMC's research team picks foreign stocks itself. One expense layer. Full portfolio visible in Indian filings. Tax treatment identical (slab rate post-April 2023). Neither automatically better — depends on whether you trust the overseas master's strategy or the Indian AMC's global research.

Three Misconceptions, Corrected

"It is safer because it is global"

Geography changes where the equity risk lives, not the quantum of risk. Global equity funds fell sharply in March 2020 (COVID), 2022 (US rate hikes), 2018 (trade-war concerns). International does NOT mean insulated.

"I will get LTCG benefit if I hold for 2+ years"

Only if you invested before April 1, 2023. For any investment made from April 2023 onwards, there is NO holding period that unlocks a lower tax rate. Your slab rate applies whether you hold 1 year or 10 years. Critical distinction many investors miss.

"Currency effects balance out long-term, so I can ignore them"

Over decades, partially true. Over the 3-7 year periods most investors actually hold funds, currency swings are material. Rupee depreciated ~30% against USD between 2014 and 2024 — a tailwind for dollar returns. But it can reverse, and direction is not guaranteed.

Portfolio Placement

Inside Equity, Not in Addition

A global equity feeder belongs in your equity allocation, not as a separate asset class. ₹10L in MFs + 10% international target → ~₹1L to a feeder. This sits within total equity, not on top of it.

What it genuinely adds: geographic diversification (not all equity in India), exposure to sectors under-represented in Indian indices, natural currency diversification if you have future foreign expenses.

What it does NOT do: eliminate equity risk, provide capital protection, guarantee returns uncorrelated from Indian markets. March 2020 and 2008: Indian and global markets fell together.

Bottom line on access: Even if a feeder fund is theoretically attractive, if it's not currently accepting investments due to the $7B cap, you may need to use a different international category (direct global fund with separate flexibility) or wait for an inflow window. Direct LRS route is the alternative, but adds 20% TCS above ₹10L, Schedule FA, and foreign-account complexity.

Part IV

The Verdict

Domestic wrapper, foreign exposure. Simpler compliance, slab-rate tax. Both are true.

Part IV: The Verdict · Page 10

30-Second Summary

Global Equity Feeder Funds wrap genuine international economic exposure inside a domestic operational shell. You invest in rupees, redeem in rupees, file under Schedule CG. The Indian AMC routes capital to a single overseas master fund that picks global stocks. Two cost layers: feeder ER + master ER, typically ~0.9% combined on modern Direct plans.

The structural tax reality for new investors: for any investment made on or after April 1, 2023, ALL gains are taxed at your slab rate regardless of holding period. No 12.5% LTCG. No ₹1.25 lakh exemption. No 24-month holding-period unlock. Pre-April 2023 grandfathered units still get 12.5% beyond 24 months. The compensating advantage: zero TCS via feeder vs 20% above ₹10 lakh on the LRS direct route — a real cash-flow edge. Access is constrained by the $7B SEBI cap; settlement is T+3 to T+4.

"This category answers: how to gain access to specialist global equity managers in a simple, SEBI-regulated, rupee-denominated wrapper. It does NOT answer: whether the tax treatment is competitive (it often is not for high-bracket investors), whether the fund is currently accepting subscriptions (it often is not), or whether the global manager's strategy will work in your holding period."
The Final Orientation

The Bottom Line: Feeder funds make most sense when (a) you want global exposure without LRS complexity, (b) you're investing under ₹10 lakh per year (TCS edge is smaller for sub-₹10L amounts), (c) you understand and accept slab-rate taxation, (d) you can find a fund currently open for inflows, and (e) you're using Direct plan to minimise cost drag. They are not the right vehicle if you specifically want LTCG benefits — for those, look at the recent equity-FOF tax improvements (FY 2025-26 Section 50AA narrowing) covered in our related category articles.

ADWIZR · May 2026

Decision Rules

Use Correctly As

✓ Part of equity allocation (not extra)

✓ Direct Plan (saves 1%/yr)

✓ Investments below ₹10L/yr (TCS edge)

✓ Growth option for deferral

Misuse Destroys Value

✕ Expecting LTCG (post-Apr 2023)

✕ Treating as "safer" equity

✕ Regular plan (extra 1%/yr drag)

✕ IDCW (slab-rate on distributions)

Slab Rate

Post-Apr 2023

Any holding

Zero TCS

vs 20% LRS

Cash flow edge

~0.9%

Combined ER

Direct plan

Investor FAQ

Questions Indian Investors Ask

Seven questions, answered directly.

Investor FAQ · Page 12

Frequently Asked Questions

Q1 Can I invest in a global equity feeder fund right now (FY 2025-26)?

As of February 2026, RBI and SEBI have not raised the industry-wide overseas investment limit of USD 7 billion. Many funds remain largely restricted. Some AMCs periodically open small windows for fresh SIPs or lump-sum investments as headroom becomes available from redemptions. Always check directly with the fund house or AMFI's website (amfiindia.com) before investing — the position can change month to month.

Q2 Is the feeder fund structure safe? Can my money get stuck abroad?

The structure is legally sound and regulated by SEBI. Your units are held in India (in your demat account or folio). Even if the overseas master fund is wound up or restructured, the Indian AMC has legal obligations to protect unit holders. If a fund is restricted from new inflows, your existing investment continues to grow or decline with the market and can be redeemed normally.

Q3 How is this different from the LRS route?

Under LRS, you can remit up to USD 250,000 per year (~₹2 crore) and invest directly in foreign stocks or foreign mutual funds. Direct ownership, but foreign currency transactions, foreign tax compliance, and from April 1, 2025, a 20% TCS on remittances above ₹10 lakh per year. A feeder fund has zero TCS, simpler compliance, is handled entirely in rupees — but faces regulatory access constraints and carries two cost layers.

Q4 What happens to my feeder fund money if the rupee crashes?

If the rupee weakens sharply against the dollar (say USD/INR 84 → 90), the same dollar amount in the overseas master becomes worth more rupees. NAV in INR rises. But this is a side effect of currency exposure, not a deliberate hedge. In a real economic crisis, equity prices often fall alongside currency weakness — partially offsetting the benefit.

Q5 Should I use the growth option or the IDCW option?

For long-term goals (5+ years), growth option is typically more tax-efficient. IDCW distributions are added to taxable income and taxed at your slab rate immediately. Growth defers the tax event until you sell. For post-April 2023 investments, both options ultimately tax gains at slab rate — but growth gives timing control. Note: IDCW (Income Distribution Cum Capital Withdrawal) is the renamed old "dividend option."

Q6 Can NRIs invest in Indian feeder funds?

Yes, subject to FEMA compliance. Capital gains tax rates are the same as for residents, but TDS is deducted at the time of redemption. NRIs should consult a tax advisor — DTAA (Double Taxation Avoidance Agreement) benefits may reduce the effective tax rate depending on country of residence.

Q7 Are SIPs possible in feeder funds, and how are they taxed?

Yes, subject to the fund being open for fresh investments. Each SIP installment is treated as a separate investment with its own purchase date. All installments from April 1, 2023 onwards are taxed at your slab rate regardless of holding period — no LTCG benefit to plan around for new SIPs. Phased redemptions over 3-6 months can help spread the tax outflow across financial years.

Key Terms & Definitions

Feeder Fund

An Indian SEBI-registered mutual fund that channels almost all its capital into a single overseas master fund. The feeder handles distribution and Indian compliance; the master picks stocks. You invest in rupees and never touch foreign markets directly.

Master Fund

The overseas mutual fund (typically run by global managers like Franklin Templeton, Schroders, BlackRock, Fidelity) into which the feeder routes its capital. The master fund selects and manages the actual portfolio of international stocks. Examples: Franklin US Opportunities, Schroders International, BlackRock World Equity.

Specified Mutual Fund

A tax category under Section 50AA of the Income Tax Act that includes funds investing less than 35% in Indian equity. Most global equity feeder funds fall under this category. For investments made on or after April 1, 2023, gains are taxed at slab rate regardless of holding period.

Grandfathering (Pre-April 2023)

The provision that preserves older tax treatment for units purchased before April 1, 2023. Such units get slab rate within 24 months and 12.5% flat LTCG beyond 24 months (for redemptions after July 23, 2024). The 24-month long-term unlock applies only to grandfathered units.

TCS on LRS

Tax Collected at Source on Liberalised Remittance Scheme transfers. From April 1, 2025: 0% up to ₹10 lakh aggregate per FY for investment-purpose remittances; 20% on the excess. Advance tax credit claimable in ITR. Does NOT apply to feeder fund purchases inside India.

SEBI $7B Overseas Cap

The industry-wide ceiling on overseas investments by Indian mutual funds, set jointly by SEBI and RBI. As of February 2026, the cap remains USD 7 billion, with a separate USD 1 billion sub-limit for overseas ETFs. Both are exhausted. Many feeder funds are restricted from new inflows; check AMFI before investing.