Description

DSP Trustee Private Limited has temporarily restricted subscriptions in DSP Multi Asset Allocation Fund effective February 27, 2026, capping transactions at Rs. 10 lakh per investor per day due to challenges in deploying large inflows per the desired asset allocation.

Summary

DSP Trustee Private Limited, acting as Trustee to DSP Mutual Fund, has issued a Notice-cum-Addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of DSP Multi Asset Allocation Fund. Effective February 27, 2026, subscriptions into the scheme are temporarily restricted to Rs. 10 lakh per transaction/instalment per investor per day, citing difficulties in deploying large incremental inflows in line with the scheme’s desired asset allocation.

Key Points

  • Temporary subscription cap of Rs. 10 lakh per transaction/instalment per investor per day is effective from February 27, 2026.
  • Restriction applies to all subscription modes: lump sum, switch-in, new SIP registrations, new STP-in registrations, and IDCW transfer.
  • The cap applies to transactions received after the cut-off time of 3:00 p.m. on February 26, 2026.
  • Existing Systematic transactions (SIP/STP) registered before the Effective Date will continue to be processed without restriction.
  • Units will continue to be allotted under the dividend reinvestment (IDCW reinvestment) option.
  • Intra-Scheme switches (Regular to Direct Plan and vice versa) and Intra-Plan switches (Growth to IDCW and vice versa) remain unrestricted regardless of amount.
  • DSP Asset Managers reserves the right to reject applications or compulsorily redeem units if aggregate transactions by an investor exceed Rs. 10 lakh per day.

Regulatory Changes

This addendum overrides any conflicting provisions in the existing SID of DSP Multi Asset Allocation Fund. All other provisions of the SID remain unchanged. The restriction is temporary and will remain in place until further notice from the Trustee/AMC.

Compliance Requirements

  • Distributors and platforms (including BSE StAR MF) must enforce the Rs. 10 lakh per investor per day subscription cap for the scheme.
  • Investors must ensure individual transactions/instalments do not exceed Rs. 10 lakh per day to avoid rejection or compulsory redemption.
  • Investors are reminded to update PAN, KYC, email, mobile number, and nominee details with the AMC.
  • Investors are advised to link PAN with Aadhaar Number.
  • Investors can check for unclaimed redemptions, IDCW payments, or inactive folios on the DSP Mutual Fund website.

Important Dates

  • February 26, 2026, 3:00 p.m.: Cut-off time after which the subscription restriction applies.
  • February 27, 2026: Effective Date of the temporary subscription restriction.
  • February 24, 2026: Date of signing/authorization of the addendum (Mumbai).

Impact Assessment

The restriction moderately impacts investors seeking to make large lump-sum or switch-in investments into DSP Multi Asset Allocation Fund. Existing SIP/STP investors are unaffected for pre-registered transactions. The measure is a liquidity management step by the fund house to protect existing unitholders from dilution of returns due to deployment challenges. Retail investors with contributions below Rs. 10 lakh per day are largely unaffected. High-net-worth individuals (HNIs) and institutional investors will need to restructure subscription strategies. The restriction does not affect equity or debt market segments directly.

Impact Justification

Affects retail and institutional investors in DSP Multi Asset Allocation Fund by capping subscriptions at Rs. 10 lakh per day; does not impact equity markets directly but limits new inflows into a specific mutual fund scheme.