Wednesday, October 11, 2006 11:17 Hrs IST
DSP Merrill to launch feeder funds
The fund house is expecting to get the SEBI clearance in three months
DSP Merrill Lynch Fund Managers would soon launch feeder funds for high networth Indian investors, intending to invest in the overseas market, reports Business Standard. The fund would, in turn, invest in Merrill Lynch`s global sector funds or other vehicles. DSP Merrill Lynch Fund had filed a draft prospectus with the Securities and Exchange Board of India (SEBI) for the first of such funds.
The fund house is expecting to get the SEBI clearance in three months and launch the fund thereafter and that the first feeder fund would be for investments that would be channelised into Merrill Lynch`s gold sector fund, which is managed out of London. According to the present rules, Indian investors can invest in global equity markets to the tune of USD 25,000. DSP Merrill Lynch Fund Managers plans to create a fund that would work as a pass-through to channelise such investments and add value to them with its global expertise. The company may launch similar feeder funds for global investments in other sectoral funds such as alternative energy or natural resources.
DSPML had recently launched a scheme for investment in midcap and small cap companies. It expects to garner approximately Rs 10 billion in the scheme, of which close to Rs 600 million is expected to come from Pune`s individual and corporate investors.