ICICI Prudential AMC Resumes Subscriptions in Overseas-Themed Schemes from Jan 27; Sets SIP/STP Investment Limits

According to the official notice, subscriptions will reopen for the following schemes:

• ICICI Prudential US Bluechip Equity Fund
• ICICI Prudential NASDAQ 100 Index Fund
• ICICI Prudential Strategic Metal and Energy Equity Fund of Fund

These schemes provide Indian investors exposure to US equities, technology-heavy indices and global commodity-linked sectors, and were among funds impacted by regulatory overseas investment limits in earlier periods.

Overview of Funds

ICICI Prudential US Bluechip Equity Fund focuses on investing in large-cap, bluechip companies listed on US stock exchanges, providing Indian investors with diversified exposure to stable American giants like Microsoft, Apple, and Nvidia. Launched in 2012, this fund follows a bottom-up investment approach, allocating around 95% to equities and equity-related instruments of top US firms.

ICICI Prudential NASDAQ 100 Index Fund is a passive fund that tracks the NASDAQ 100 Index, which comprises 100 of the largest non-financial companies listed on the NASDAQ, heavily weighted towards technology leaders such as Amazon, Meta, and Tesla. This fund replicates the index's performance through investments in the underlying securities or related derivatives, offering pure-play exposure to innovative US tech and growth sectors with minimal tracking error.

ICICI Prudential Strategic Metal and Energy Equity Fund of Fund invests predominantly in units of overseas funds like the First Trust Strategic Metals and Energy UCITS ETF, targeting companies involved in metals, energy transition, mining, and related commodities such as copper, lithium, uranium, and clean energy producers. With nearly 100% allocation to thematic equity funds, it capitalises on global shifts towards electrification, renewable energy, and resource scarcity, appealing to investors bullish on commodity supercycles and geopolitical energy dynamics.

First Trust Strategic Metals and Energy UCITS ETF’s investment objective focuses on capital appreciation through a portfolio of global equity securities related mainly to gold (for metals and mining) and oil/gas (for energy).

ICICI Prudential Sets Investment Limits 

While subscriptions have been reopened, the AMC has placed defined limits per investor. Fresh or additional purchases through lump-sum mode, switches, Systematic Investment Plans (SIP), and Systematic Transfer Plans (STP) will be permitted up to ₹2 lakh per PAN per month per scheme.

To facilitate systematic participation, the AMC has also specified SIP/STP frequency-wise ceilings on a per PAN basis as follows:

 Daily SIP/STP: up to ₹10,000

 Weekly SIP/STP: up to ₹50,000

 Fortnightly SIP: up to ₹1,00,000

 Monthly SIP/STP: up to ₹2,00,000

 Quarterly SIP/STP: up to ₹6,00,000

The limits apply cumulatively across all products, including special features such as Freedom SIP, SIP Top Up facility, Booster SIP, Flex STP, Booster STP, Capital Appreciation STP, Transfer-in of Income Distribution cum Capital Withdrawal Plan (IDCW).

Freedom SIP, SIP Top-Up, Booster SIP, Flex STP, Capital Appreciation STP, and IDCW transfer triggers.

Implications for Investors

The reopening of inflows is likely to benefit retail investors seeking global diversification, particularly within technology and developed market equities. The NASDAQ 100 and US Bluechip funds have historically attracted interest from investors looking to balance domestic exposure with high-growth overseas sectors.

Financial advisors note that systematic limits allow gradual deployment while preventing aggressive inflows that could breach overseas investment caps. The ₹2 lakh monthly ceiling per investor per scheme is viewed as a balanced approach to accommodate demand without regulatory pressure.

Why Overseas Investments Were Paused?

ICICI Prudential Mutual Fund had earlier paused overseas investments after the mutual fund industry approached reached the regulatory ceilings prescribed by SEBI and the Reserve Bank of India. The framework imposed an industry-wide limit0 of $7 billion for foreign securities and $1 billion for international ETFs, which led to a temporary suspension of new inflows across select schemes.

Consequently, ICICI Prudential MF restricted fresh lump-sum, SIP, and STP investments in international offerings such as the Nasdaq 100 Index Fund and the US Bluechip Equity Fund once the available limits were exhausted.

Conclusion

With global markets witnessing increased investor interest ahead of anticipated cyclical shifts in the US. economy, the reopening of these three ICICI Prudential schemes provides fresh avenues for diversification. Investors who were previously blocked from new allocations in overseas equity themes may find renewed access from January 27, subject to operational caps.