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 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