Nippon India MF restricts subscriptions to small cap fund

Published on Jul 07, 2023 12:58

Nippon India Mutual Fund has decided to limit the subscription of units in Nippon India Small Cap Fund with effect from 7 July 2023.

This means that no new or additional subscriptions or switch-ins will be allowed, except for SIPs and STPs, with a daily limit of Rs 5 lakhs per PAN.

The reason for this is to facilitate gradual deployment of corpus in order to align with the nature of small cap investing.

"The step is warranted considering the recent sharp rally in the small cap space and increased investor participation through high ticket investments which would be in the best interest of existing unit holders and appropriate for incremental investments," Nippon India Mutual Fund said in a notification.

The restriction will not apply to investments mandated as per regulatory requirements or to SIPs or STPs registered prior to the effective date.