Mumbai: DSP Small Cap Fund Scheme will be opened by DSP Investment Managers for subscription through the SIP/STP on September 3, 2018. However, other routes like subscription/switch-in application(s) in the Scheme and/or registration of new Dividend Transfer Plan (‘DTP’) in the Scheme shall continue to be temporarily suspended into the Scheme.
DSP first 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 unitholders. In August 2016, DSP further restricted flows into the Scheme to Rs. 1 lakh per investor. The Scheme stopped fresh inflows altogether in February 2017.
Kalpen Parekh, President, DSP Investment Managers Pvt. Ltd said, “We have always believed that we will re-open the Scheme for subscriptions in a structure that we feel will be best suited for our investors when our fund managers feel comfortable to absorb further flows. While the small-cap space has seen some correction, it also presents an opportunity to buy certain high conviction stocks at reasonable valuations.
“We still expect the market to remain volatile in the mid-2019 run-up to the election. Hence, we have opened subscriptions through the STP/SIP route only. We believe that there is an opportunity for investors to increase exposure to small caps post the recent correction, via the SIP route with a long-term time horizon,” she further added.
Vinit Sambre, Head – Equities, DSP Investment Managers Pvt. Ltd., said “Not only the earnings cycle is picking up but also the 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. Our process and philosophy in picking up stocks remain unchanged and we are confident that we will continue to build a portfolio of good companies.”