Nippon India Mutual Fund on Thursday (July 6) said it has decided to limit the subscription of units in Nippon India Small Cap Fund with effect from July 7, 2023.
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The Nippon India Small Cap Fund is an open-ended equity scheme predominantly investing in small-cap stocks.
Also, the fund will limit fresh or additional subscriptions at any point in time till further notice, from the effective date (July 7). Further, fresh registrations through systematic investment plan (SIP) without initial investment or systematic transfer plan (STP) or any such other special product will continue with a limit of Rs 5 lakh per day per PAN.
The limit on the subscription of units of the scheme is being proposed to facilitate gradual deployment of the corpus in order to align with the nature of small-cap investing, the fund house noted.
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 unitholders and appropriate for incremental investments, it said.
However, the 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 mandatory contribution by AMCs in its schemes.
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. All other features, terms, and conditions pertaining to the above-mentioned scheme shall remain unchanged, the fund house added.
