Wednesday, August 20, 2008 14:37 Hrs IST

DSP ML MF launches FMP 12 Months Series 3

NFO period from 18 August- 27 August 2008

DSP Merrill Lynch Mutual Fund has unveiled DSP Merrill Lynch Fixed Maturity Plan 12 Months Series 3 on 18 August 2008. The NFO will close on 27 August 2008. The new offer price of units Rs 10 per unit.

It is a close-ended income schemes with maturity profile of 12 months. The primary investment objective of 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 scheme will display a maturity profile that is generally in line with the term of the scheme.

The scheme will invest up to 100% in debt instruments and up to 100% in money market. It may invest up to a maximum of 100% of the scheme’s net assets in fixed income derivatives. Debt securities may include securitised debt up to 100% of each schemes net assets. Debt instruments may include fixed income derivatives only for hedging and portfolio balancing up to 100% of scheme’s net assets.

The scheme has two plans i.e. regular and institutional plan. Both plans will provide growth and dividend reinvest option.

There will no entry load charged for the scheme due to its close-ended structure.

DSP Merrill Lynch FMP 12 Months Series 3 charges an exit load of 1.50%, if the investment is redeemed before the maturity date.

The minimum investment amount under regular plan will be Rs. 10,000 and in multiples of Re. 1 thereafter for the scheme. The scheme will have the minimum investment amount under institutional plan of Rs.1 crore and in multiples of Re. 1 thereafter.

The benchmark index of the scheme is CRISIL Short Term Bond Fund Index. Dhawal Dalal will manage the investments of the schemes.