Motilal Oswal Halts Microcap Fund Inflows: What It Means for Investors

• Motilal Oswal AMC paused fresh investments into its Nifty Microcap 250 Index Fund from January 8.
• The decision follows discussions with SEBI regarding mutual fund classification rules, as 'micro-cap' is not a recognized category.
• All new investments, including lump-sum, SIPs, and STPs, are temporarily halted.
• Transactions received after 3:00 pm on January 8 will be refunded.
• Existing investors are unaffected, and the fund will continue to be managed as per its strategy; further updates await SEBI discussions.

Why It Matters: Motilal Oswal paused microcap fund inflows due to SEBI classification, impacting new investors but not existing ones.