Tata Mutual Fund has decided to suspend fresh inflows into Tata Small Cap Fund. The move — applicable for only lump sum and switch-in applications — will come into effect from July 1 and will stay effective until further notice, the asset management company said.
The fund house said that existing systematic investment plans (SIPs) and requests for new ones will continue.
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In May, the small-cap category saw highest-ever inflows of Rs 3,280 crore. Industry players said that valuations of small-cap stocks have increased and there are concerns that if inflows continue at this pace, there could be a challenge in deployment of these funds.
Earlier, SBI Mutual Fund had suspended lump-sum investments in its small-cap fund and capped SIP investment at Rs 25,000.
First Published: Jun 26 2023 | 8:49 PM IST