DSP MF to open small cap fund

Chennai: DSP Mutual Fund has revoked the temporary suspension of lumpsum investments in units of DSP Small Cap Fund (Scheme) with effect from 1 April. All lumpsum investments/subscriptions including all systematic investments in units of the scheme shall be accepted, it said in a press note.

DSP first restricted flows into the scheme in October 2014 to Rs two lakh per investor as it felt that further large inflows into the Scheme may prove detrimental to the interest of the existing unit holders. In August 2016, DSP further restricted flows into the Scheme to Rs one lakh per investor.

The scheme stopped fresh inflows altogether in February 2017. DSP opened the scheme for subscriptions only through SIP/STP route on 3 September, 2018.

Kalpen Parekh, president, DSP Investment Managers said, “Small caps have very high volatility. The small cap index, for example has not made any returns for 13 years now, but in cycles intermittently good small businesses deliver good results. Thus, timing becomes very important.”


NT Bureau