Mutual Fund News for June 2026

SEBI clarifies family trusts cannot sponsor mutual funds

Securities and Exchange Board of India has clarified that family trusts cannot act as sponsors of mutual funds because they are not recognised as body corporates under mutual fund regulations.

The clarification came in response to a query from First Water Capital Advisory LLP. SEBI stated that mutual fund sponsors must be body corporates acting individually or together with another body corporate for establishing mutual funds or mutual fund lite structures.

The clarification provides greater regulatory certainty for fund sponsors and investment structures in the asset management industry. It also reinforces SEBI’s emphasis on maintaining a clearly defined corporate governance framework within the mutual fund sector.

DSP Mutual Fund sees opportunity in rupee assets

DSP Mutual Fund believes the current market environment presents an attractive opportunity for investing in rupee-denominated equities and bonds despite concerns around crude oil prices, foreign fund outflows and rupee weakness.

In a recent investment note, the fund house highlighted five reasons supporting Indian assets, including cyclical currency movements and the undervaluation of the rupee based on the Real Effective Exchange Rate (REER).

DSP Mutual Fund said the rupee’s REER has fallen sharply, creating what it described as a strong margin of safety for investors allocating to domestic assets. The fund house also argued that betting against the rupee at current levels may be a low-probability strategy.

Franklin Templeton suspends subscriptions in retirement fund

Franklin Templeton Mutual Fund has temporarily suspended subscriptions in the Franklin India Retirement Fund with effect from May 20.

The suspension applies to fresh lump-sum investments, switches from other schemes, systematic investment plans (SIPs), systematic transfer plans (STPs) and new SIP or STP registrations.

The fund house said the move was taken to comply with SEBI’s categorisation and rationalisation norms for mutual fund schemes issued under the regulator’s master circular framework.

Existing terms and conditions of the scheme remain unchanged. The temporary restriction is expected to remain in place until further notice from the fund house.

SEBI proposes limited third-party payments in mutual funds

Securities and Exchange Board of India has proposed permitting third-party payments in mutual funds under specific scenarios while retaining safeguards against misuse.

The regulator suggested allowing such payments for cases like employer investments on behalf of employees and payment of commissions by asset management companies. Currently, mutual fund investments must originate directly from the investor’s own bank account.

SEBI said the proposal aims to balance investor convenience with safeguards related to anti-money laundering compliance and investor protection. The regulator added that strong monitoring mechanisms would continue to apply to prevent misuse of third-party transactions.

The proposal forms part of SEBI’s broader efforts to simplify investment processes while maintaining regulatory oversight in the mutual fund industry.

Baroda BNP Paribas MF removes limits on Aqua FoF subscriptions

Baroda BNP Paribas Mutual Fund has removed the Rs. 5 lakh daily subscription cap on lumpsum investments in its international scheme, Baroda BNP Paribas Aqua Fund of Fund, with effect from May 20.

The fund house has also resumed fresh registrations for Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs). Investments will continue to remain subject to overseas investment limits available at the asset management company level.

The earlier restrictions had been imposed due to regulatory limits on overseas mutual fund investments. The fund house clarified that fresh investments would only be accepted within the available headroom under overseas exposure limits prescribed for the industry.

The Wealth Company MF launches large & midcap fund

The Wealth Company Mutual Fund has launched the The Wealth Company Large & Mid Cap Fund, an open-ended equity scheme investing across large-cap and mid-cap stocks.

The new fund offer (NFO) will remain open from May 21 to June 4. The scheme will maintain a minimum allocation of 35% each in large-cap and mid-cap companies to balance stability and growth potential.

Backed by the Pantomath Group, the fund house said the product aims to provide long-term capital appreciation through an actively managed portfolio. The launch marks the company’s 10th fund introduction within 10 months of operations, highlighting its rapid expansion in the asset management business.

ICICI Prudential AMC launches two long-short investment strategies

ICICI Prudential Asset Management Company has launched two new investment strategies under its Specialised Investment Funds (SIF) platform — iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund.

The new fund offers are currently open and will close on June 2. The strategies aim to provide flexible portfolio management through long-short positioning, derivatives-based risk management and dynamic asset allocation.

Chief Investment Officer Sankaran Naren said the strategies are designed for volatile markets characterised by sharp rotations across sectors, styles and asset classes.

The minimum investment amount for first-time investors has been set at Rs. 10 lakh.

PGIM India MF reopens subscriptions in global funds

PGIM India Mutual Fund has reopened subscriptions in three international schemes — PGIM India Global Equity Opportunities Fund of Fund, PGIM India Emerging Markets Equity Fund of Fund and PGIM India Global Select Real Estate Securities Fund of Fund — from May 18.

The fund house will now allow fresh SIPs and STPs of up to Rs. 2 lakh per day per investor for each scheme.

Earlier, the AMC had imposed temporary restrictions in March due to overseas investment limits applicable to the mutual fund industry. Existing SIP and transfer plan instalments had continued during the restriction period.

The reopening reflects available headroom within the overseas investment limits permitted for the fund house.