Tata Mutual Fund has decided to stop accepting lump-sum amounts and switch-in investments in its small-cap scheme from July 1.
The move comes after a surge in inflows experienced by the Tata Small Cap Fund in May. The fund has a cash holding of 14.12% due to a delay in deploying the received funds.
The lump-sum and switch-in investments would be accepted until June 30, the fund said in a statement. After this, investors will not be able to invest through these modes.
However, the fund will continue accepting investments through systematic investment plans and systematic transfer plans. This means that existing SIPs and STPs will continue as usual, and new investors can still register for these investment options.
There are no restrictions on redemption requests or switching out of the scheme. The move will stay effective until further notice, the company said.
Tata Small Cap Fund was launched on Nov. 12, 2018. It manages assets worth Rs 4,458.6 crore as of May 31. Chandraprakash Padiyar and Satish Chandra Mishra are the fund managers of the scheme.
The fund has a direct expense ratio of 0.46 and regular expense ratio of 1.91 as on May 31.
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