DSP BlackRock MF shuts fresh inflows to Microcap Fund

DSP BlackRock Mutual Fund has stopped fresh investments in its open-ended equity growth scheme Microcap Fund.
It will review opening it again for new inflows at a later date, it said, adding that investors can evaluate DSP BlackRock Small and Mid Cap Fund for their investment needs.
"Having less than desired weightage in stocks that the fund invests in, could limit the fund's ability to generate returns in the future.
"Hence, in the interest of investors, we have taken a decision to stop accepting fresh investments -- both via lumpsum and SIPs. However, we will continue to accept flows coming from existing SIPs," DSP BlackRock Mutual Fund said in a statement.

"Depending on our views on liquidity and investment opportunities in the future, we will review the possibility of opening the fund for fresh investments again," it added.
DSP BlackRock Microcap Fund's current size is posing the bigger challenge of liquidity, it said.

DSP BlackRock Micro Cap Fund's assets under management as on January 31, 2017 was close to Rs 4,780 crore, making it among the largest funds in this category.
The company has suggested DSP BlackRock Small and Mid Cap Fund to investors and said the investment philosophy for the both the funds is the same.
Both funds follow a bottom-up stock selection approach with a significant amount of focus on identifying fundamentally strong companies which could create value over the long term.

DSP BlackRock Small and Mid Cap Fund's portfolio largely comprises securities ranked 100-300 by market capitalisation with a small exposure to securities ranked beyond 300.
DSP BlackRock Mutual Fund is a joint venture between DSP Group, a more than 150-year old Indian financial firm, and BlackRock, the largest investment management company in the world.