Nippon India Mutual Fund will stop taking fresh lump-sum investments in its Nippon India Small-Cap Fund from July 7.
"The limit on the subscription of units of the scheme is being proposed to facilitate the gradual deployment of the corpus in order to align with the nature of small-cap investing," Nippon India Mutual Fund said in a statement on Thursday.
"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," the fund house said.
The new SIPs and STPs of up to Rs 5 lakh per day per PAN will be allowed, the fund house said. Existing SIPs and STPs will not be restricted, it said.
An open-ended equity scheme, the Nippon India Small-Cap Fund, had Rs 28,778.9 crore in assets under management as of March 31. Tata Mutual Fund had earlier stopped lumpsum investments in its small-cap fund, effective July 1.
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