Reliance Mutual Fund will stop taking fresh subscriptions under Reliance Small Cap Fund with effect from March 26, according to a newspaper notice.
“It is decided to limit the subscription of units in Reliance Small Cap Fund (an open-ended equity Scheme) through suspension of subscription via fresh/additional subscriptions/switch-ins and limit the subscription through Systematic Investment Plan (“SIP”) or Systematic Transfer Plan (“STP”) or such other special product, with effect from March 26, 2018 (“effective date”) till further notice,” the addendum stated.
The limit on subscription of units has been done with a view that increasing the size of the corpus of the scheme further may prove detrimental to the interest of the existing unit holders, the notice said.
While the fund house has restricted fresh lump sum, it will continue to receive SIP of up to Rs.1 lakh.
The assets under management of Reliance Small Cap Fund stood at Rs.6,613 crore as on February 2018.
In the last few months, many small and mid-cap funds have stopped fresh inflows into their schemes citing lack of buying opportunities.
In December, Mirae Asset Emerging Bluechip Fund had restricted SIPs to up to Rs 25,000 per instalment only on the 10th of each month.
They had stopped lump sum investment in the fund in 2016. L&T Mutual Fund had also stopped fresh inflows in L&T Emerging Business Fund. On February 2017, DSP BlackRock Mutual Fund suspended the sale of units in DSP BlackRock Micro Cap Fund.moneycontrol