DSP BlackRock Mutual Fund announced the following to further limit the inflows in one of the top performing funds in the mid and small cap category in the industry, DSP BlackRock Micro cap Fund.
Lump sum subscriptions / switch-ins / new SIPs and STPs into DSP BlackRock Micro Cap Fund amounting to more than Rs. 1.00 Lakh will not be accepted starting from August 10, 2016 (until further notice)
Any existing SIPs / STPs registered before August 10, 2016 will continue as per the investor’s instructions
Daily STP into the Scheme of any amount will not be accepted starting from August 10, 2016 (until further notice)
All other terms of the Scheme Information Document will remain unchanged
The Scheme’s AUM as at July 31, 2016 stands at Rs. 3,399 crore, making it among one the largest funds in this category, if not the largest.
The communique from DSP BlackRock Mutual Fund to the distributors says that, “while a further increase in AUM in this Scheme will certainly be beneficial for us as an asset management firm, we believe that this may mean that existing investors in this Scheme may be compromised in their returns and they may not get the complete benefit of investing in the micro cap space”.
They further added “We have a disciplined and well researched approach to investing combined with robust risk-management controls and processes which has held us in good stead over the years. The foundation of our business lies in our belief that our investor’s interests are of paramount importance. Therefore, in the interest of the existing investors in the scheme, we believe it would be prudent to limit the pace of further inflows”
(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)