Mutual Fund News : SBI Mutual Fund Reopens Lumpsum Investment in SBI Small Cap Fund

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SBI Mutual Fund has reopened lumpsum subscription in its small cap scheme - SBI Small Cap Fund, with effect from March 31, 2020. However, the fund house has put a limit of Rs 1,000 crore to the lumpsum inflows. Which means it will stop accepting lumpsum investment once the Rs 1,000 crore threshold is achieved.

The fund house has reopened lumpsum subscriptions in SBI Small Cap Fund after a gap of four years. Back in October 2015, the fund house had stopped lumpsum investments in the scheme, to stop huge inflows into the scheme at a time of high valuations in the small cap space. However the fund house had earlier started accepting investment through Systematic Investment Plan (SIP) in the scheme, subject to a maximum limit of up to Rs. 25,000/- per month and per PAN card.

The fund will allow / accept fresh/ additional subscriptions/switch-ins for any amount subject to the minimum application amount as mentioned in the scheme information document and key information memorandum of the scheme. All other provisions of the Scheme Information Document, Key Information Memorandum of the Scheme and Combined KIM shall remain unchanged.

Notably, another small cap schemes which was shut for lumpsum investments, DSP Small Cap Fund too has decided to open the scheme again in the last week.

Prior to making investments, investor(s)/Unit Holder(s) are requested to carefully read the relevant addenda, reflecting in detail the consequent amendments to the Scheme Information Document and Key Information Memorandum (KIM) and Combined KIM of schemes of the Fund.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.