DSP BlackRock Investment Managers Pvt Ltd, one of the premier asset management companies in India, today announced the launch of the DSP BlackRock Equity Savings Fund. The scheme intends to generate long-term capital appreciation by investing a portion of its assets in equity and equity related instruments. The scheme also endeavors to generate income through investments in fixed income securities and using arbitrage and other derivative strategies. DSP BlackRock Equity Savings Fund is an open ended equity scheme and will be initially available for subscription during its new fund offer period from March 08 to March 22, 2016.
The DSP BlackRock Equity Savings Fund's portfolio would be a combination of equity, arbitrage and fixed income securities. When arbitrage opportunities are available and accessible, the scheme's total exposure to equity and equity related securities could vary between 65% to 75% of the total portfolio, of which, equity derivatives including Index Futures, Stock Futures, Stock Options and Index Options could be between 25% - 55%. The scheme's exposure to debt and money market instruments could vary between 25% - 35% of the total portfolio.
While the equity portion aims to provide capital growth, the arbitrage portion endeavors to capture mispricing opportunities. Further, the debt portion will provide stability in returns and likely low volatility. Hence, a diligent mix of three strategies may help provide capital appreciation while likely limiting downside risk. The fund would be treated as an equity-oriented fund for the purpose of taxation, which could provide better tax efficiency than debt funds.
DSP BlackRock Equity Savings Fund will be managed by Vinit Sambre and Marzban Irani. The scheme is benchmarked against the Nifty 500 (30%) and Crisil Liquid Fund Index (70%) and has two plans viz. Direct Plan and Regular Plan, with both of them offering Growth and Dividend options. The exit load would be 1% for a holding period of upto 12 months. There would be no exit load for a holding period beyond 12 months.
Anup Maheshwari, EVP and Head Equities & Corporate Strategy, DSP BlackRock Investment Managers Pvt Ltd said, "Many investors may appreciate a product combining the benefits of equity, debt and arbitrage opportunities which offer the potential for long term capital appreciation with likely lower volatility."