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Tata Mutual Fund suspends fresh inflows into Tata small-cap fund

The fund house said that existing systematic investment plans (SIPs) and requests for new ones will continue

mutual funds, MFs

Abhishek Kumar Mumbai
Tata Mutual Fund has decided to suspend fresh inflows into Tata Small Cap Fund. The move -- applicable for only lump sum and switch-in applications -- will come into effect from July 1 and will stay effective until further notice, the asset management company said.

The fund house said that existing systematic investment plans (SIPs) and requests for new ones will continue.

In May, the small-cap category saw highest-ever inflows of Rs 3,280 crore. Industry players said that valuations of small-cap stocks have increased and there are concerns that if inflows continue at this pace, there could be a challenge in deployment of these funds.

Earlier, SBI Mutual Fund had suspended lump-sum investments in its small-cap fund and capped SIP investment at Rs 25,000.

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First Published: Jun 26 2023 | 8:49 PM IST

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