Wednesday, March 02, 2011 10:30 Hrs IST

DSP BlackRock MF Unveils 12 Months Fund

NFO Period from 3 March to 7 March 2011

DSP BlackRock Mutual Fund has unveiled a new scheme named as DSP BlackRock FMP – 12M – Series 15, a close-ended income scheme, with a maturity profile of 12 months from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 3 March and close on 7 March 2011.

The primary investment objective of the scheme is to seek capital appreciation by investing in a portfolio of debt and money market securities. The scheme will invest only in such securities which mature on or before the date of maturity of the scheme. The scheme may also use fixed income derivatives for hedging and portfolio balancing.

The scheme offers a choice of two options, growth option and dividend payout option.

The scheme would allocate up to 100% of assets in debt securities and money market securities with low to medium risk profile. Debt securities may include fixed income derivatives (only for hedging and portfolio re-balancing) upto 50% of the net assets.

The minimum application amount is Rs 10000 and in multiples of Rs 10 thereafter. The Mutual Fund seeks to collect a minimum subscription amount of Rs 10 crore under the scheme during the NFO period.

Entry and exit load charge will be nil for the scheme. Units of scheme are proposed to be listed on the National Stock Exchange of India.

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index.

The fund manager of the scheme will be Mr. Dhawal Dalal.