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Avoid timing the market with lump-sum investments

IDFC Mutual Fund is the latest fund house to join the ranks of those which have restricted heavy lump-sum investments in their funds. It has limited lump-sum investment in IDFC Focused Equity Fund to Rs 2 lakh a day. Similar restrictions have been imposed in the recent past in other funds: DSP BlackRock Micro Cap, Edelweiss Tax Advantage, L&T Emerging Businesses, and SBI Small and Midcap Fund.

“Fund managers are not finding enough attractive opportunities at attractive valuations in these strategies, so they feel that it would be prudent to restrict investments,” says Kunal Bajaj, founder and chief executive officer (CEO),

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