New Delhi, March 19 -- With India's mutual fund industry hitting the market regulator's $7 billion overseas investment limit, one door has been shut for Indian investors looking for global diversification. But they have the alternative option of investing overseas through portfolio management services (PMS), which are professionally managed funds with access to international markets.

This route requires investors to transfer funds via India's liberalised remittance scheme (LRS), under which individuals can remit up to $250,000 in a financial year for investments. The minimum ticket size for PMS funds is $75,000, or about Rs.66 lakh.

Pramod Gubbi, co-founder at Marcellus Investment Managers, said Indian investors tend to have nearly 99% ...