Tata Mutual Fund allows lumpsum investments in small-cap plan again

MUMBAI: Tata Mutual Fund has resumed accepting lumpsum investments in its small-cap fund from April 6, reversing a restriction imposed in June 2023 when it had limited inflows to SIPs amid stretched valuations. The fund house said the recent market correction has created a window to deploy fresh money at more reasonable valuations.

"The risk-reward is in favour of investors with a 3-5 year time frame," said Chandraprakash Padiyar, fund manager at Tata Mutual Fund. "There is potential for an upgrade in earnings."

Other small-cap schemes such as those from Nippon India Mutual Fund and SBI Mutual Fund continue to restrict lumpsum inflows.


According to data from the Association of Mutual Funds in India, the small-cap category manages assets worth ₹3.65 lakh crore. The Tata Small Cap Fund had assets under management of ₹10,715 crore as of February 28, 2026. The scheme has underperformed over the past year, declining 9.26%, compared with a 0.68% gain in its benchmark, the BSE Smallcap 250 TRI (Total Returns Index).