The doors are opening up and you may walk if you wish. Small-cap mutual funds are calling you to open your wallets and invest. On Monday, L&T Emerging Businesses Fund, a small-cap mutual fund, started to allow investors to invest lump sum as well as through systematic investment plans (SIPs) with no limits. In December 2017, it had stopped accepting applications (lump sum as well as fresh SIP registrations) in excess of ₹ 2 lakh per transaction per day. Taking advantage of a continued correction in small- and mid-cap stocks, mutual fund houses are increasingly looking to invest in them at current market prices.
Elsewhere, DSP Small Cap Fund (earlier DSP BlackRock Micro Cap Fund), also opened its doors, on Tuesday. It will now allow investors to start fresh SIPs and systematic transfer plans (STPs, a facility where investors can invest a lump sum amount in a liquid or debt fund and can then systematically transfer amounts to an equity fund). DSP Small Cap Fund will, however, still not allow lump sum amounts.
