Tuesday, March 11, 2008 09:56 Hrs IST
DSP Merrill Lynch MF extends NFO period for two FMP
NFOs will close on 12 March 2008
DSP Merrill Lynch mutual fund has extended the new fund offering (NFO) period of DSP Merrill Lynch Fixed Maturity Plan- 13 months Series 1 and DSP Merrill Lynch Fixed Maturity Plan 3 Months Series 6 from 11 March to 12 March 2008. The issue is open for subscription from 5 March 2008.
Both the schemes are close-ended income scheme. The NFO price for the fund is Rs 10 per unit. The minimum investment amount under regular plan will be Rs. 25,000 and in multiples of Re. 1 thereafter for both the schemes. Both schemes will have the investment under institutional plan will be of Rs.1 crore and in multiples of Re. 1 thereafter.
The primary investment objective of both the schemes is to seek capital appreciation by investing in a portfolio of debt and money market securities. It is envisaged that the portfolio of each scheme will display a maturity profile that is generally in line with the term of the scheme. The schemes may also use fixed income derivatives for hedging and portfolio balancing.
These schemes have two plans i.e. regular and institutional plan. Both plans will provide growth and dividend reinvest option.
There will no entry load charged for both the schemes due to its close-ended structure.
DSP Merrill Lynch FMP 13 Months Series 1 charges an exit load of 1.50%, if the investment is redeemed before the maturity date.
DSP Merrill Lynch FMP 3 Months Series 6- charges an exit load of 0.50%, if the investment is redeemed before the maturity date.
Both funds will invest can invest up to 100% in debt instruments and up to 100% in money market. These schemes may invest up to a maximum of 100% of the schemes net assets in domestic securitised debt.