DSP BlackRock Mutual Fund has decided to stop accepting new lump sum applications in its flagship scheme DSP BlackRock Micro Cap Fund from February 20 in order to consolidate bulky inflows. The fund house has also restricted fresh inflows through SIPs. The fund house said that there is a possibility that large inflows into the scheme may prove detrimental to the interest of the existing unit holders. The fund currently manages assets under management (AUM) of Rs 4780 crore as on January 30, 2017.
These transactions include all subscription/switch-in applications of new SIPs, STPs, dividend transfer plan (DTP) in the scheme. The scheme will continue to allot units for subscription transactions pertaining to SIP, STP, DTP, Super SIP facilities registered before February 20, 2017, said a press release issued by the company.
The mandate of the fund is to invest in companies beyond the top 300 companies by market capitalisation. But, with their valuations moving up, there are fewer opportunities to invest. The fund's assets have moved to Rs 4,751 crore in January 2017, from Rs 348 crore three years ago.
Earlier fund houses like IDFC, Mirae Asset and SBI MF had curbed investments in their respective mid-cap funds. However, those restrictions applied only to a ceiling on lump sum investments.
This is the third time DSP Blackrock is putting investment restrictions on its Microcap Fund. In September 2014, it had put a restriction of Rs 2 lakh for daily lump sum subscription and reduced it to Rs 1 lakh in August 2016. Last year, Mirae Asset Emerging Bluechip too stopped accepting lump sum subscriptions and Motilal Oswal PMS had stopped fresh inflows in one of its products.