Mumbai / Chennai, August 31, 2018: DSP Investment Managers announced that it would be opening its DSP Small Cap Fund (the Scheme) for subscriptions through the SIP/STP route on September 3rd, 2018. However, other routes like subscription/switch-in application(s) in the Scheme and/or registration of new Dividend Transfer Plan (‘DTP’) in the Scheme shall continue to be temporarily suspended into the Scheme.
DSP first restricted flows into the Scheme in October 2014 to Rs 2 lakh per investor as it felt that further large inflows into the Scheme may prove detrimental to the interest of the existing unit holders. In August 2016, DSP further restricted flows into the Scheme to Rs. 1 lakh per investor. The Scheme stopped fresh inflows altogether in February 2017.
Kalpen Parekh, President, DSP Investment Managers Pvt. Ltd said, “We have always believed that we will re-open the Scheme for subscriptions in a structure that we feel will be best suited for our investors when our fund managers feel comfortable to absorb further flows. While the small cap space has seen some correction, it also presents an opportunity to buy certain high conviction stocks at reasonable valuations.
We still expect the market to remain volatile in the mid-2019 run up to the election. Hence, we have opened subscriptions through the STP/SIP route only. We believe that there is an opportunity for investors to increase exposure to small caps post the recent correction, via the SIP route with a long term time horizon.”
Vinit Sambre, Head – Equities, DSP Investment Managers Pvt. Ltd., said “The earnings cycle seems to be picking up, but at the same time, broad valuations continue to be high. While some small caps have seen a correction, we have re-oriented the portfolio by taking advantage of large price corrections and adding some of these small cap stocks to the portfolio. Our process and philosophy in picking up stocks remains unchanged and we are confident that we will continue to build a portfolio of good companies.”
About DSP Group
The DSP Group, headed by Mr. Hemendra Kothari, is one of the oldest and most respected financial services firms in India, having commenced its stock broking business in the 1860s. The earlier generation of the family was among the founding members of the Bombay Stock Exchange in the 1870s. Over the past 152 years, the family behind the Group has been very influential in the growth and professionalization of capital markets and money management business in India.
The DSP Group’s joint venture arrangement with Merrill Lynch Investment Managers in 1996 established its retail asset management business in India, DSP Merrill Lynch Asset Management (India) Ltd. This business went on to become DSP BlackRock Investment Managers Pvt. Ltd. in 2008 (after BlackRock Inc. took over Merrill Lynch’s global asset management business in 2006). In August 2018, the DSP Group completed the buyout of BlackRock’s 40% stake in DSP BlackRock and changed its name to DSP Mutual Fund. DSP Mutual Fund is today one of India’s premier investment management firms. For additional information, please visit www.dspim.com
