Mutual Funds Blackrock DSP Bonds
Mutual Funds Blackrock DSP BondsReuters file

DSP BlackRock Investment Managers, a joint venture between India's DSP Group and American global investment management  BlackRock, announced on Friday that transactions in one of its mutual fund (MF) schemes will remain suspended temporarily, fearing large inflows.

In a statement, the asset management firm said certain transactions in DSP BlackRock Micro Cap Fund, an open ended diversified equity growth scheme, have been suspended with effect from August 10, 2016 since "there is a possibility that further large inflows into the scheme may prove detrimental to the interests of the existing unit holder(s)."

DSP BlackRock Micro Cap Fund's assets under management as on July 31, 2016 stood at Rs. 3,113 crore, making it among the largest funds in the category.

"While the firm believes that any further increase in AUM in this scheme may certainly be beneficial to the company, this may also mean that there is a possibility that existing investors in this scheme may be compromised in their returns and they may not get the complete benefit of investing in the micro cap space," it said in the statement.

The transactions suspended include:

  • Subscription/switch-in application(s) in the Scheme amounting to more than Rs. 1 lakh,
  • Registration of new Systematic Investment Plan (SIP) in the scheme of single instalment amounting to more than Rs. 1 lakh, 
  • Registration of new Systematic Transfer Plan (STP) into the scheme of single instalment amounting to more than Rs. 1 lakh, and
  • Daily STP into the Scheme of any amount.

Overall, the assets under management of DSP Blackrock Mutual Fund under various schemes stood at Rs. 43,821 crore at the end of the quarter ended June 30, 2016. Of this, Rs. 15,962 crore, or 36.4 percent were under equity schemes (other than equity linked savings schemes, or ELSS). 

The DSP Group has 60 percent stake in DSP BlackRock Investment Managers, with the rest held by BlackRock.

The top MF houses in India are HDFC MF, Reliance MF and ICICI MF.