From this December, two schemes will not accept investments if your client’s investment amount is more than Rs.2 lakh.
IDFC MF and L&T MF has suspended the sale of units of IDFC Focused Equity Fund and L&T Emerging Businesses Fund with effect from December 4 and December 11 respectively.
Currently, IDFC Focused Equity Fund and L&T Emerging Businesses Fund have an AUM of Rs.707 crore and Rs.2,283 crore respectively as on October.
“All fresh subscriptions including new switch-ins, systematic investment, and transfer plans in the scheme amounting to over Rs.2 lakh per instalment will be temporarily suspended,” states the notice by IDFC MF.
The other fund house, L&T Mutual Fund says that they have stopped large inflows, as it may not be in the interest of the existing unit holders.
A few small and mid-cap funds have earlier stopped fresh inflows into their schemes citing lack of buying opportunities. On February, DSP BlackRock Mutual Fund suspended the sale of units in DSP BlackRock Micro Cap Fund.
