The fund house also stated that fresh registrations through systematic investment plan without initial investment or systematic transfer plan or such other special product shall continue with a limit of Rs 5 lakh per day per PAN.
This move is to facilitate gradual deployment of corpus in order to align with the nature of small cap investing. “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 unit holders and appropriate for incremental investments.”
The small cap category received a total inflow of Rs 12,397.14 crore, the highest among all growth/equity oriented schemes during January-May 2023 (last available data), as per AMFI data.
Nippon India Small Cap Fund is benchmarked against Nifty Smallcap 250 – TRI. During the first six months of 2023, the scheme offered around 17.17% return against 11.46% by the benchmark. Launched in September 2010, the scheme offered 20.65% since inception. In the six month and one year horizons, the scheme offered 19.65% and 39.46% returns. The scheme is benchmarked against Nifty Smallcap 250 – TRI. The scheme has outperformed its benchmark in both of these horizons.
The above restriction will not affect SIP or STP or such other special product registered prior to the effective date and the unitholders under dividend reinvestment option. Nippon India Small Cap Fund is the third small cap fund that has stopped accepting fresh investments. The other two small cap schemes that stopped accepting money are SBI Small Cap Fund and Tata Small Cap Fund.Nippon India Small Cap Fund, an open-ended equity scheme predominantly investing in small cap stocks.The portfolio of the fund is diversified across 179 stocks, with top 10 stocks accounting for 16.29%.
