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ICICI Prudential Mutual Fund has announced the resumption of subscriptions in its Smallcap Fund from January 23, 2026, ending a 22-month suspension. The reopening follows improved market valuations and stability in the small-cap segment. Investors can now participate through lump sum, SIP, STP, and switch transactions, with all prior restrictions withdrawn.
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ICICI Prudential Asset Management Company (AMC), India’s second-largest fund house, has reopened its Smallcap Fund for fresh investments starting January 23, 2026. The decision comes after nearly two years of halted subscriptions, initially imposed in March 2024 due to concerns over overheated valuations and investor protection.
Key Highlights:
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Resumption Date: Subscriptions reopen on January 23, 2026.
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Modes of Investment: Investors can now opt for lump sum purchases, SIPs, STPs, and switch-ins.
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Restrictions Lifted: All PAN-level investment limits have been withdrawn.
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Reason for Pause: Subscriptions were suspended in March 2024 amid elevated small-cap valuations and SEBI’s cautionary stance.
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Market Context: Improved valuations and healthier market conditions prompted the reopening.
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Fund Performance: Delivered a 3-year CAGR of ~14.7% as of January 20, 2026, reflecting resilience despite volatility.
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Investor Outlook: The reopening offers renewed opportunities in India’s small-cap space, though investors are advised to remain mindful of inherent risks.
This move signals confidence in the small-cap segment’s recovery and provides investors with fresh avenues to diversify portfolios through systematic and lump sum investments.
Sources: The Economic Times, Business Standard, Moneycontrol, Reuters
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