DSP Mutual Fund temporarily restricts subscription in its multi asset allocation fund

DSP Mutual Fund has announced to temporarily restrict subscriptions in DSP Multi Asset Allocation Fund with effect from February 27. The restriction is imposed as continued incremental large inflows into the scheme. It is posing challenges in deploying the funds in accordance with the desired asset allocation.

The fund house announced this to its unitholders through a notice cum addendum and shared how these temporary restrictions will be implemented under the scheme.

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According to the fund house, any subscriptions (including lump sum investments or switch-in or new registrations of Systematic Investment Plan (SIP) or Systematic Transfer Plan (STP-in) or transfer of IDCW, etc.) exceeding Rs 10 lakh per transaction / instalment per investor per day shall not be accepted in the scheme.

The scheme will continue to allot units for subscription transactions pursuant to Systematic transactions registered prior to the Effective Date and pursuant to IDCW declared under the dividend reinvestment option of the scheme.

Intra-scheme switches (i.e., Regular Plan to Direct Plan and vice versa) and Intra-Plan switches (i.e., Growth Option to IDCW Option and vice versa) will continue to be accepted irrespective of any amount.

The notice cum addendum further said that DSP Asset Managers reserves the right to reject any application(s) or compulsorily redeem units without prior notice at the applicable NAV, in the event of multiple applications/transactions by an investor exceeding Rs 10 lakh per day.

The above-mentioned change shall override the conflicting provisions, if any, and shall form an integral part of the SID of the concerned scheme(s) of the fund, as amended from time to time. All the other provisions of the SID of the scheme(s) of the fund, except as specifically modified herein above, remain unchanged.

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In the multi asset allocation category, DSP Multi Asset Allocation Fund is the fifth largest fund with an AUM of Rs 7,731 crore as of January 31, 2026. This multi asset allocation fund had 32 stocks in its portfolio and the portfolio is spread over 21 sectors.

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