Motilal Oswal Microcap Fund Halts Inflows After SEBI Talks, Not Due to Performance

• Motilal Oswal Nifty Microcap 250 Index Fund paused fresh inflows in consultation with SEBI.
• The decision is not due to performance concerns or liquidity issues, clarifies Pratik Oswal.
• Microcap is not yet part of SEBI's formal market-cap classification framework, prompting the pause.
• The fund, launched in July 2023, has delivered 20-22% returns since inception, despite recent microcap correction.
• Existing investors are unaffected; redemptions remain open, and the fund manages Rs 2,625.6 crore.

Why It Matters: Motilal Oswal Microcap Fund's inflow halt is a regulatory alignment, not a performance or liquidity issue.