DSP BlackRock Micro Cap scheme will temporarily stop taking new investments in any form from Feb 20, 2017.
However, it will accept investments made till end of business hours on Feb 17, 2017, subject to current limits.
As per an addendum to the Scheme Information Document issued by the fund house, “with effect from Feb 20, 2017 (‘effective date’), the following transactions shall be temporarily suspended into the Scheme:
All subscription/switch in application(s) in the Scheme and/or registration of new Systematic Investment Plan (‘SIP’), Systematic Transfer Plan (‘STP’), Dividend Transfer Plan (‘DTP’) in the Scheme.”
However, the Scheme will continue to allot units for subscription transactions pursuant to SIP, STP or DTP registered before the effective date.
It means that all transactions registered till Feb 17, 2017 will be accepted and allotted units in DSP BlackRock Micro Cap scheme.
Will your existing SIPs in DSP BlackRock Micro cap scheme be affected?
No, they will not. They will continue to be invested as before till your defined period. So, if you had made an SIP till Dec 2018, it will continue being invested till that date.
Have the redemptions been stopped too?
No, redemptions as well as Systematic Withdrawal Plans (SWPs) have not been stopped. Only fresh subscriptions (lumpsum), SIPs and STPs have been stopped.
Why this suspension? Is there a problem with the scheme?
DSP BlackRock Micro Cap Scheme is a small/micro cap scheme and one of the popular ones too. The fund house has previously too limited or suspended transactions in the scheme. In the past, it had limited lumpsum subscriptions to Rs. 2 lakhs (2015) and Rs. 1 lakh (2016). Rs. 1 lakh lumpsum investment limit continues even now.
There is no problem with the scheme. It has only taken a call to limit fresh inflows on a temporary basis. This is done with a view that currently there are limited investment opportunities in the market.
Should you take advantage of the window available and invest money into the scheme by Feb 17, 2017?
Please consider your asset allocation, risk profile and existing portfolio. Take an investment decision in line with the same. You need not rush into an investment just because it will not be available after a certain date.
Key information about DSP BlackRock Micro cap scheme
- Scheme Objective: To generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities, which are not part of the top 300 companies by market capitalisation.
- Risk profile: Moderately High
- Benchmark: S&P BSE Small Cap