Monday, January 28, 2008 14:05 Hrs IST

DSP ML MF files an offer document

Plans to launch DSP ML Arbitrage Opportunities Fund

Name of Fund: DSP ML Arbitrage Opportunities Fund

Scheme: It is an open-ended equity scheme.

Objective: The investment objective of the scheme is to seek to generate income through arbitrage opportunities emerging out of spreads between the cash market and the derivatives market and/or any two markets and through deployment of surplus cash in fixed income instruments.

Investment options: This open-ended equity scheme has two plans i.e. regular and institutional plans. The scheme offers growth option and dividend option with both monthly and quarterly dividend option.

Asset Allocation:

Asset allocation under normal circumstances when arbitrage opportunities are available and accessible: The scheme will invest 65-90% of its portfolio in equity and equity related securities of companies domiciled in India. It will invest 65-90% in equity derivatives, including index futures, stock futures, stock options, index options etc. The scheme may invest 10-35% in money market and debt instruments, including domestic securitised debt.

Asset allocation when adequate arbitrage opportunities are not available in the derivative and equity markets: The scheme may invest 0-65% in equity and equity related securities of companies domiciled in India. It will have 0-65% investment in equity derivatives, including index futures, stock futures, stock options, index options etc. There will be 35-100% investment in money market and debt instruments, including domestic securitised debt.

Exposure to securitised debt will not exceed 30% of the net assets of the scheme

Face Value: Rs 10.

Entry Load: There will be no entry load charged for the scheme.

Exit Load: The scheme charges an exit load of 0.50% if the investment units are redeemed in first 3 months from the date of allotment, and nil if the investor redeems on or after 3 months from the date of allotment. No exit load shall be will be charged on investments including SIP transactions by Fund of Funds schemes.

Minimum Investment Amount: The minimum investment amount under regular plan is Rs.25000 and above. For institutional plan the minimum investment amount is Rs 1 crore and above.

Targeted amount: Rs 1 crore.

Benchmark: CRISIL Liquid Fund Index.

Fund Manager: Mr. Anup Maheshwaru, Mr. Dhawal Dalal and Mr. Aditya Merchant