World's top-performing fund running out of good stocks to buy

Mumbai

THE world's best-performing stock fund is discovering the downside of success.

After producing a three-year return of 275 per cent, more than any other equity fund with at least US$500 million, managers of the DSP BlackRock Micro Cap Fund say bargains are disappearing in their market niche of Indian small-caps. The dearth of cheap shares has become so severe that the fund took the unusual step of limiting client inflows as India's benchmark small-cap index jumped to an all-time high this month.