DSP Investment Managers, a financial service provider, recently announced that it will open its DSP small cap fund for subscription. It will be available for subscriptions through the SIP/STP route on September 3, 2018. The company believes that post the recent correction, investors have an opportunity for long-term gain in small caps through the SIP route.
DSP to launch small cap fund
However, the firm informed that the other routes like subscription/ switch-in application or registration of new dividend transfer plan in the scheme, will continue to be temporarily suspended.
Hence, DSP preferred to open subscriptions through the STP/SIP route. “The earnings cycle seems to be picking up, but at the same time, broad valuations continue to be high. While some small caps have seen a correction, we have re-oriented the portfolio by taking advantage of large price corrections and adding some of these small cap stocks to the portfolio,” Vinit Sambre, Head (Equities), DSP Investment Managers, said.
The financial firm had restricted flows into the scheme in October 2014 to Rs 2 lakh per investor as it felt that further large inflows into the Scheme may prove detrimental to the interest of the existing unit holders. In August 2016, DSP further restricted flows into the Scheme to Rs 1 lakh per investor. And, the scheme stopped fresh inflows completely in February 2017.