DSP BlackRock Micro Cap Fund has now become one of the largest funds in its category. While we continue to find interesting investment opportunities for the fund to invest in, its current size poses the bigger challenge of liquidity.

Due to the fund size, it is increasingly difficult to incrementally build positions, i.e. to increase stock weightage of companies to a meaningful size in the portfolio.

               

Where does the DSP BlackRock Micro Cap Fund invest?

Having less than desired weightage in stocks that the fund invests in, could limit the fund's ability to generate returns in the future. Hence, in the interest of investors, DSP BlackRock AMC has taken a decision to stop accepting fresh investments - both via lumpsum and SIPs. However, DSP BlackRock Fund House will continue to accept flows coming from existing SIPs.

Depending on our views on liquidity and investment opportunities in the future, DSP BlackRock AMC will review the possibility of opening the fund for fresh investments again.