Nippon India Smallcap Fund stops lump sum subscription from July 7, fresh SIPs to continue with limits

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Asset Management Ltd announced that it will now limit the subscription of units in Nippon India Small Cap Fund scheme with effect from July 7, 2023. The small cap fund is an open-ended equity scheme predominantly investing in small cap stocks. Fresh, additional subscriptions/switch-ins will not be allowed or accepted at any point of time till further notice, from the effective date, announced the asset management company (AMC).  It added that fresh registrations through systematic investment plan (SIP) without initial investment or systematic transfer plan (STP) or such other special product will continue with a limit of Rs.

5 lakhs per day per PAN. The limit on the subscription of units of the scheme has been proposed to facilitate gradual deployment of corpus in order to align with the nature of small cap investing. The step has been taken 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, according to Nippon India AMC.

The above-mentioned investment restrictions will not be applicable for investments mandated as per regulatory requirements i.e. alignment of interest of designated employees of AMCs with the unitholders of the mutual fund schemes and a mandatory contribution by AMC in its schemes, it added. The restriction will not affect SIP or STP or such other special product registered prior to the effective date and the unitholders under dividend reinvestment option.