Kotak Mutual Fund has announced the resumption of subscriptions for its Kotak Global Emerging Market Fund. This open-ended fund-of-fund scheme invests in overseas mutual fund schemes focusing on global emerging markets.

Kotak Mutual Fund will now accept subscriptions through various methods, including lumpsum investments, fresh systematic investment plans (SIP), systematic transfer plans (STP), and dividend transfer plans (DTP).

The fund house will monitor the total overseas investment limit closely, ensuring compliance with the Securities and Exchange Board of India (SEBI) directive.

To adhere to SEBI’s regulations, Kotak Mutual Fund capped its overseas investments at the amount recorded as of February 1, 2022.

This decision followed a temporary suspension of transactions in the Kotak Global Emerging Market Fund from February 2, 2022.

The suspension was implemented to prevent breaching the industry-wide overseas investment limits set by the Reserve Bank of India (RBI).

In a letter dated June 17, 2022, SEBI permitted mutual fund schemes to resume overseas investments, provided they do not exceed the limits available as of February 1, 2022.

Kotak Mutual Fund has resumed subscriptions while remaining within these prescribed limits.

What this means for investors

Investors in the Kotak Global Emerging Market Fund can now re-enter the market or increase their investments through the reopened subscription options.

However, the fund house has emphasised that it may suspend subscriptions again if it approaches the overseas investment limit set earlier.

Kotak Mutual Fund has clarified that all other terms and conditions outlined in the Statement of Additional Information (SAI), Scheme Information Document (SID), and Key Information Memorandum (KIM) remain unchanged.