DSP Blackrock Micro Cap Fund, an open ended diversified equity growth scheme which invests in mid-cap stocks, will stop accepting fresh inflows with effect from Februrary 20, 2017. The aim is to protect interests of the existing unit-holders, given the reduced scope for capital appreciation.
The transactions would also encompass inflows via Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs) and Dividend Transfer Plans (DTP), DSP BlackRock Investment Managers Pvt Ltd., it was said in a statement on Tuesday (Feb 14).
Read: Some transactions in DSP BlackRock Micro Cap Fund temporarily suspended
"Having less than desired weightage in stocks that the fund invests in can limit the fund's ability to generate returns in the future. Hence, in the interest of existing investors, we have taken a decision to stop accepting fresh investments — both via lumpsum and SIPs," Aditi Kothari Desai, EVP and Head — Sales, Marketing & E-Business, DSP BlackRock Investment Managers Pvt Ltd., was quoted as saying.
The fund will continue to allot units for subscription transactions pertaining to SIP, STP, DTP, Super SIP facilities registered before February 20, 2017.
DSP BlackRock Micro Cap Fund's assets under management (AUMs) as on January 31, 2017, was close to Rs 4,780 crore and its one-year return is 48.86 per cent, according to a scheme update.
Launched in January 2007, the fund seeks to generate returns by investing in companies that are not part of the top 300 companies by market capitalisation.
Inflows into equity funds were Rs 4,900 crore in January 2017, marking the 10th consecutive month of inflows into equity schemes.The AUMs of 42 mutual fund houses in India stood at Rs 17.37 lakh crore as of January 31, 2017.
AUMs of equity-linked savings schemes (ELSSs) stood at Rs 53,886 crore at the end of January 2017.
The BSE Sensex closed 12 points lower on Tuesday at 28,339, while the NSE Nifty ended 13 points lower at 8,792. Stocks that bucked the trend included: Bharti Airtel (up 3.03 per cent), GAIL (up 3.02 per cent) and Reliance Industries Ltd. (up 1.94 per cent).
