ICICI Pru MF also stops lump sum flows into mid & small-cap schemes
lump sum money in its mid- and small-cap schemes from March 14, deploying flow curbs a day after Sebi chairperson Madhabi Puri Buch underscored the dangers of potential «froth» or «bubbles» in pockets of the market traditionally favoured by retail investors.
Earlier, Nippon, Tata and SBI MFs put restrictions on lump sum investments in their small-cap schemes, as high valuations and strong flows make it challenging for fund managers to deploy money. But ICICI will be the first fund house to restrict lump sum investments in a mid-cap fund.
It said in a notice that the fund house will not accept any fresh subscriptions through lump sum mode or switches into both its mid-cap and small-cap funds. However, it will continue to take fresh registrations through systematic investment plans (SIP) and systematic transfer plans (STP) with a limit of ₹2 lakh per PAN level per month per scheme.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-108447073»>
“Keeping the interest of the investors protected from sudden market movements, the trustees have decided to temporarily discontinue subscriptions in the Schemes,” said the fund house in a notice to investors. The AMC may accept lump sum subscriptions… in the schemes at a future date when in its assessment the valuations become attractive and fresh approval shall be sought from the Board of Trustee in this regard at that time,” the notice said.
In the last one year, the S&P BSE 250 Small Cap TRI (Total Returns Index) rose 55.53%,
