DSP Small Cap Fund (earlier known as DSP Micro Cap Fund)is re-opening for SIPs & STPs beginning September 3. The fund will, however, continue to not accept lump-sum investments.
The scheme had stopped accepting both lump-sum and SIP/STP investments since February 2017. Before that in August 2016, the scheme had restricted lump sum investments to ₹1 lakh per person.
In September 2014, the scheme had put a restriction of Rs 2 lakh for daily lump sum subscription.
Small cap funds are for aggressive investors with a long term time horizon.
The BSE Small Cap Index is down 19% from its peak, with several individual stocks losing 25-35%. Earnings outlook for many stocks is rising as the economy improves.
DSP Small Cap Fund has been one of the best performers in the small cap category over five-year and 10-year periods.
Returns are annualised & as on 27th Aug. 2018. Data Source: Value Research