Reliance Mutual Fund to suspend fresh subscriptions in small cap fund

Reliance Mutual Fund to suspend fresh subscriptions in small cap fund

Reliance Mutual Fund will stop taking fresh subscriptions under Reliance Small Cap Fund with effect from March 26. “It is decided to limit the subscription of units in Reliance Small Cap Fund (an open-ended equity Scheme) through suspension of subscription via fresh/additional subscriptions/switch-ins and limit the subscription through Systematic Investment Plan (“SIP”) or Systematic Transfer Plan (“STP”) or such other special product, with effect from March 26, 2018 (“effective date”) till further notice,” the addendum stated.

The limit on subscription of units has been done with a view that increasing the size of the corpus of the scheme further may prove detrimental to the interest of the existing unit holders, the notice said.

While the fund house has restricted fresh lump sum, it will continue to receive SIP of up to Rs.1 lakh.

The assets under management of Reliance Small Cap Fund stood at Rs.6,613 crore as on February 2018.

In the last few months, many small and mid-cap funds have stopped fresh inflows into their schemes citing lack of buying opportunities.

In December, Mirae Asset Emerging Bluechip Fund had restricted SIPs to up to Rs 25,000 per instalment only on the 10th of each month.

They had stopped lump sum investment in the fund in 2016. L&T Mutual Fund had also stopped fresh inflows in L&T Emerging Business Fund. On February 2017, DSP BlackRock Mutual Fund suspended the sale of units in DSP BlackRock Micro Cap Fund.

1 Like

Hi,

Thanks for the heads up.

Would you know of any way by which one can automatically be updated about such changes pertaining to mutual fund subscriptions, both opening up & closure? Maybe something like an RSS feed one could subscribe to?

Or is manually checking whenever one is ready for investments the only way to go?

Thanks for your time.

But then why my SIP order from zerodha got cancelled ?

Sunil, explained here

So then whats the solution for Zerodha coins users ?

Hi,
I have purchased Reliance Small Cap Fund on 25 Feb, with first installment as 5K, and then SIP from next month. However, till 28th It was showing under account, that SIP is due, but it didnt bought any. I know that they have suspended fresh subscription, but i have purchased in Feb, then how it get stopped. Also, no feedback from Zerodha team on the same, or auto mailer or anything.

Hi Anuj,

We had sent you an email regarding this on 26th March. Please check your email for the same and kindly contact our support desk for any further queries.

We are having a discussion with the AMC to try and revoke the suspension and limit the amount for lumpsum as well to Rs 1 Lakh. If the AMC had informed us well in advance then we could have tried to prevent the suspension in lumpsum as well. You can invest in alternate small cap fund. Almost all small cap funds have the same performance because there will always be more than 70%-80% of the stocks which are common to the portfolios since there are not too many small cap stocks within the fund managers’ scope of research.

Thanks for the update. And plz let us know any future update.