The textbook fix is behind a door that is mostly shut.
Every course teaches you to spread across countries. Nobody mentions that in India the counter is rationed.
| International funds on the shelf | Count | Share |
|---|
| Closed to fresh money | 54 | 81.8 pct |
| Still accept a fresh SIP | 12 | 18.2 pct |
| Still accept a lump sum | 1 | 1.5 pct |
| Why the door shut | The rule |
|---|
| Industry ceiling on foreign securities | 7 bn dollars |
| Separate ceiling for overseas ETFs | 1 bn dollars |
| Year those limits were set | 2008 |
| Month the industry hit the ceiling | Jan 2022 |
A fund reopens only when its own investors leave, or when global markets fall and its foreign holdings shrink under the frozen line. Houses ration that scrap, which is why several open SIPs cap you at Rs 5000 a month. Building even a 10 percent foreign sleeve on a Rs 5000000 book at that rate takes 100 months. Eight years and four months to place one fifth of a decision.