Nippon’s smallcap fund puts further curbs on inflows

Mumbai: Nippon India Small Cap Fund, the largest scheme in this mutual fund category with assets under management of ₹46,044 crore, has put further restrictions on flows from fresh systematic investment plan (SIP) and Systematic transfer plan (STP). The fund house will now only accept applications worth ₹50,000 per PAN per day from Friday.

The move is aimed at bringing predictability to flows into the scheme as fund managers struggle to handle large investments in the wake of the uncertainty in small-cap shares.

In July 2023, Nippon stopped accepting lumpsum investments and capped daily investments through SIPs and STPs at ₹5 lakh per PAN per day.

The fund house will also impose an exit load - a fee for premature redemptions - of 1% for redemptions before one year. Till now, the exit load was applicable only for one month.

Other schemes in this category, including SBI Small Cap, Tata Small Cap, ICICI SmallCap and Kotak Small Cap have imposed restrictions on lumpsum purchases.