Why are some mutual funds restricted to SIP or lumpsum investments only?
Sometimes, mutual funds allow investments only through SIP or only through lumpsum. This is due to rules set by the Asset Management Company (AMC) or exchange. These restrictions help manage the fund better and protect investors.
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Some high-risk funds (like small-cap or sector funds) allow only SIPs to reduce risk.
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AMCs may stop lumpsum investments to avoid large cash inflows.
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Platform limitations can restrict how you invest.
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High minimum amounts may block lumpsum options.
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To control fund size and prevent overvaluation.
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Fund managers prefer steady SIP inflows for easier money deployment.
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To protect investors from market volatility.
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To reduce investments in sectors that are overheating.
If one option is not available, you can use the other option (SIP or lumpsum).
Examples of mutual fund schemes with SIP or lumpsum restrictions:
Note: 'No limit' means there is no specific investment cap, but either SIP or lumpsum may still be unavailable depending on AMC policies.
Always review the scheme details on
Fyers Direct to stay updated on any investment restrictions before placing your order.
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