DSP BlackRock Investment Managers today announced that it will temporarily suspend all fresh transactions in DSP BlackRock Micro Cap Fund, an open ended diversified equity growth scheme with effect from February 20, 2017
DSP BlackRock Investment Managers today announced that it will temporarily suspend all fresh transactions in DSP BlackRock Micro Cap Fund, an open ended diversified equity growth scheme with effect from February 20, 2017, stated a press release from the fund house.
These transactions include all subscription/switch-in application(s) and/or registration of new Systematic Investment Plan or SIP, Systematic Transfer Plan STP, Dividend Transfer Plan or DTP in the Scheme. The Scheme will continue to allot units for subscription transactions pertaining to SIP, STP, DTP, Super SIP facilities registered before February 20, 2017.
The step comes on the back of a sharp run-up in mid and small-cap shares that has made it difficult for the fund managers to identify stocks. DSP Blackrock Microcap Fund has given a return of 42.83% in the last one year.
In a statement the fund house stated 'as there is a possibility that large inflows into the Scheme may prove detrimental to the interest of the existing unit holders (Hence, they have decided to temporarily suspend fresh transactions).
“While we continue to find interesting investment opportunities for the fund to invest in, its current size poses the bigger challenge of liquidity. It is challenging to incrementally build positions, i.e. to increase stock weightage of companies to a meaningful size in the portfolio,” said Vinit Sambre, Senior Vice President and Fund Manager, DSP BlackRock Mutual Fund.
Any subscriptions/switch-in/SIP/STP/DTP applications received post the cut-off timing of February 17, 2017 would not be accepted. The aforesaid suspension will continue till further notice, a release from the the fund house said
DSP BlackRock Micro Cap Fund’s AUM as on January 31, 2017 stood at Rs 4,780 crore.