Description

DSP Mutual Fund temporarily restricts subscriptions in DSP Multi Asset Allocation Fund to Rs. 10 lakh per transaction per investor per day, effective February 27, 2026, due to challenges in fund deployment.

Summary

DSP Trustee Private Limited has decided to temporarily restrict subscriptions in DSP Multi Asset Allocation Fund (MAAF) effective February 27, 2026. The restriction caps all new subscriptions at Rs. 10 lakh (Rupees Ten Lakh) per transaction per investor per day across all modes including lump sum, SIP, STP-in, and switch-in. The restriction is driven by challenges in deploying large incremental inflows in accordance with the scheme’s desired asset allocation. NSE has implemented these changes on the NSE MF Invest Platform.

Key Points

  • Subscriptions exceeding Rs. 10 lakh per transaction/instalment per investor per day will not be accepted in DSP Multi Asset Allocation Fund
  • Restriction applies to all subscription transactions received after 3:00 p.m. cut-off on February 26, 2026
  • Covers lump sum purchases, switch-ins, new SIP registrations, new STP-in registrations, and IDCW transfer registrations
  • Existing systematic transactions (SIP/STP) registered before the effective date will continue unaffected
  • IDCW declared under dividend reinvestment option will continue to be processed
  • Intra-scheme switches (Regular to Direct Plan and vice versa) and intra-plan switches (Growth to IDCW and vice versa) will continue without restriction
  • DSP Asset Managers reserves the right to reject applications or compulsorily redeem units if multiple transactions by an investor exceed Rs. 10 lakh per day

Regulatory Changes

The addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of DSP Multi Asset Allocation Fund introduces a temporary maximum subscription cap of Rs. 10 lakh per transaction per investor per day. This addendum overrides any conflicting provisions in the existing SID and forms an integral part of the scheme documentation until further notice.

Compliance Requirements

  • NSE members on the MF Invest Platform must note the updated subscription limits for DSP Multi Asset Allocation Fund
  • Members should communicate the restriction to investors looking to place lump sum or new systematic transactions exceeding Rs. 10 lakh
  • Applications exceeding the cap received after 3:00 p.m. on February 26, 2026 must not be processed
  • Members should advise investors to update PAN, KYC, email address, mobile number, and nominee details with the AMC and link PAN with Aadhaar

Important Dates

  • February 24, 2026: Date of addendum signed by DSP Asset Managers Private Limited
  • February 26, 2026, 3:00 p.m.: Cut-off time after which the restriction applies to new subscription transactions
  • February 27, 2026: Effective date of the subscription restriction
  • Until further notice: Duration of the temporary restriction

Impact Assessment

The restriction primarily impacts high-value retail and institutional investors seeking to make large lump sum investments or establish new large-ticket systematic plans in DSP Multi Asset Allocation Fund. Investors with existing SIPs or STPs above Rs. 10 lakh registered before February 27, 2026 are grandfathered and will continue unaffected. The measure is a defensive portfolio management action to prevent deployment challenges caused by excessive inflows, and does not affect redemptions or existing investors’ holdings. The impact is moderate — limited to new large-ticket subscribers — and is reversible once DSP Mutual Fund lifts the restriction.

Impact Justification

Affects investors in DSP Multi Asset Allocation Fund by capping subscriptions at Rs. 10 lakh per transaction; does not affect existing SIPs/STPs registered before the effective date or intra-scheme switches.