SBI Small and Midcap Fund is not accepting new purchases. I am currently investing ₹500 every month in this scheme through a Systematic Investment Plan (SIP). How is this news going to affect me? I am also a little worried about the NAV of the scheme going down.
- Ronak
Yes, it is true that the scheme has stopped accepting fresh investments. This means you will not be able to invest in the scheme anymore.
A top official of the fund has offered two reasons for not accepting fresh investments. One, the offer document of the scheme has stated that it will have a capacity constrain of ₹750 crore. It is nearing the target amount, that is why it has stopped accepting new investments. Two, the fund house also 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.
This is unlikely to have an adverse impact on the performance of the scheme.
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