Monday, October 08, 2007 11:41 Hrs IST

DSPML MF files an offer document

Plans to launch DSPML Natural Resources and New Energy Fund

DSPML MF has filed an offer document for DSPML Natural Resources and New Energy Fund. This is an open-ended equity growth scheme. The face value of each unit is Rs. 10.

The scheme offers institutional and regular plan. Each plan offers option A and option B. Option A is growth option. Option B is dividend option. Dividend option is available with sub options of payout dividend facility and reinvest dividend facility.

For regular plan the minimum investment is Rs. 5000 and in multiples of Re.1 thereafter. For institutional plan the minimum investment amount is Rs.5 crore and in multiples of Re. 1 thereafter.

Scheme will charge an entry load of 2.25% for the amount less than Rs.5 crore. For the investment above Rs.5 crore there will be no entry load charged.

Scheme will charge an exit load of 1% if the amount is redeemed within six months from the date of allotment. For the investment redeemed after six months but before twelve months there will be 0.50% exit load charged. There will be no exit load on the investment redeemed after twelve months.

The primary investment objective of the scheme is to seek to generate capital appreciation and provide long term growth opportunities by investing in equity and equity related securities of companies domiciled in India whose pre-dominant economic activity is in the –

• Discovery, development, production, or distribution of natural resources, viz., energy, mining

• alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage and enabling energy technologies.

The fund will also invest a certain portion of its corpus in the equity and equity related securities of companies domiciled overseas (which are chiefly engaged in the discovery, development, production or distribution of natural resources and alternative energy) and/or units of Merrill Lynch International Investment Funds – New Energy Fund and Merrill Lynch International Investment Funds – World Energy Fund. Similar other overseas investment vehicles may be selected too.

The fund’s benchmark will be somewhat unique: 35% in S&P CNX Energy, 30% in BSE Metals and 35% MSCI World Energy, the offer document has stated, adding that the fund manager will pick up equities on a bottom-up, stock-by-stock basis, with consideration given to low price-to-earnings, price-to-book and price-to-sales ratios. Besides, growth, margins, asset turns and cash flows will be considered.

At least 65% of the portfolio will be exposed to equity and equity related securities of companies domiciled in India. Likewise, under normal market conditions, not more than 35% of the portfolio will be invested in companies domiciled overseas.