Franklin Templeton to Cap Investments in Two Overseas Funds Starting May 18 Due to SEBI Limit
Franklin Templeton Mutual Fund Imposes Temporary Investment Caps on Overseas Schemes
Franklin Templeton Mutual Fund has announced a temporary cap on the maximum investment amount in two of its overseas fund schemes, effective May 18, 2026. The move is aimed at staying within the industry-wide overseas investment limits set by the Securities and Exchange Board of India (SEBI).
The restriction applies to Franklin India Asian Equity Fund and Franklin U.S. Opportunities Equity Active Fund of Funds. This decision is in line with Para 13.11 of the SEBI Master Circular for Mutual Funds dated March 20, 2026.
Under the revised norms, fresh and additional purchases through lump sum mode, as well as switches into the designated schemes from any other Franklin Templeton scheme, will be capped at Rs 5 lakh per PAN per month at the first holder or guardian level. Fresh registrations through Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) will be restricted to Rs 50,000 per PAN per month.
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The following table illustrates the comparison of the new investment limits:
| Investment Mode | Monthly Limit per PAN |
|---|---|
| Lump Sum and Switches | Rs 5 lakh |
| SIP and STP | Rs 50,000 |
Any transaction that breaches these limits will be rejected outright and refunded. Partial amounts will not be accepted under any circumstance. Investors with existing SIP or STP registrations made before the effective date will not be impacted by the new restrictions. Unitholders under the IDCW Reinvestment Option are also exempt, according to the fund house.
Franklin Templeton noted that total investments in overseas funds or securities across all its schemes will remain capped at levels prevailing as of February 1, 2022. The fund house also stated that the trustees reserve the right to discontinue subscriptions under the schemes for a specified period or until further notice, in accordance with the Scheme Information Document.
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Investor Takeaway
Franklin Templeton Mutual Fund has capped investments in two overseas funds due to SEBI limits.
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