DSP Blackrock Mutual Fund has decided to restrict flows into its top performing small-cap scheme. The step comes in the wake of a sharp run-up in mid- and small-cap shares that has made it tough for fund managers to pick winners.
From August 10, the fund house will not accept investment of more than Rs1 lakh per investor daily in its Micro Cap Fund. Investors will not be able to register daily systematic transfer plan (STP) or weekly systematic investment plan (SIP). "The mandate of the fund is to invest in companies beyond the top 300 companies by market capitalisation," said DSP Blackrock Mutual Fund's portfolio manager Vinit Sambre, who manages the micro-cap fund. "As valuations in the mid- and small-cap space have moved up, the number of opportunities in the micro-cap space have shrunk".
