Why no fresh investments in SBI Small & Midcap Fund? | Value Research It is not unusual for funds to stop accepting fresh investments. For example, IDFC Premier Equity Fund used to stop taking fresh investments in the past
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Why no fresh investments in SBI Small & Midcap Fund?

It is not unusual for funds to stop accepting fresh investments. For example, IDFC Premier Equity Fund used to stop taking fresh investments in the past

I have significant investments in SBI Small & Midcap fund. It is one of the best performing small cap fund in its category. I was slightly surprised to see the news that the fund has stopped accepting fresh investments. Is it fairly common for a mutual fund to stop taking fresh investments? Other small cap funds are not doing the same thing. For example, DSP BlackRock Micro Cap fund has an AUM of ₹2,200 crore and they are still taking fresh investments.
- Sachin D

The move will not have any negative impact on your investments. The offer document of the scheme states that it will have a capacity constraint of ₹750 crore. It is nearing the target amount, that is why it has stopped accepting new investments. Also, the fund house feels that with a large corpus it would be a struggle to find good investment avenues within the narrow universe of small and midcap stocks.

It is not unusual for mid cap funds to stop accepting fresh investments temporarily. For example, IDFC Premier Equity Fund, Franklin Prima Fund, HSBC Midcap Fund, Reliance Growth etc have stopped taking fresh investments for a limited period in the past.


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