DSP Mutual Fund has reopened fresh subscription in DSP Small Cap Fund through SIP/STP with effect from September 3, 2018. However, the fund house will continue to suspend lumpsum investment in the scheme.
DSP first restricted flows in October 2014 as it felt that further large inflows into the scheme would prove detrimental to the interest of the existing unit holders. In August 2016, DSP further restricted flows to Rs. 1 lakh per investor. The scheme stopped fresh inflows altogether in February 2017.
Kalpen Parekh, President, DSP Mutual Fund said, “While the small cap space has seen some correction, it also presents an opportunity to buy certain high conviction stocks at reasonable valuations. We still expect the market to remain volatile in the mid-2019 run up to the election. Hence, we have opened subscriptions through the STP/SIP route only. We believe that there is an opportunity for investors to increase exposure to small caps post the recent correction, via the SIP route with a long term time horizon.”
Vinit Sambre, Head - Equities, DSP Mutual Fund said, “The earnings cycle seems to be picking up but at the same time, broad valuations continue to be high. While some small caps have seen a correction, we have re-oriented the portfolio by taking advantage of large price corrections and adding some of these small cap stocks to the portfolio. Our process and philosophy in picking up stocks remains unchanged and we are confident that we will continue to build a portfolio of good companies.”