DSP Investment Managers has launched an open-ended equity scheme, DSP Value Fund, which will invest in quality companies at reasonable valuations besides 35 per cent of its portfolio in global equities.
The new fund offer will open on Friday and close on December 4.
DSP Value Fund aims to generate better risk-adjusted returns with lower volatility across cycles. It starts with Nifty500 universe.
For alpha generation
The international exposure is designed to provide an edge of diversification and a potential source of alpha generation to investors.
The scheme also proposes to invest up to 35 per cent in debt and money market instruments and keep in cash or arbitrage whenever enough investment opportunities meeting the valuation criteria are not available, said the fund house.
‘Disciplined rules’
Kalpen Parekh, President, DSP Investment Managers, said in the current low interest rate, good companies rarely come cheap and hence it is important to apply disciplined rules to identify such companies at reasonable prices.
Investors in this scheme should have a long-term orientation to endure phases of underperformance that is a part of the value investing journey, he added.