DSP MF launches DSP Floater Fund
DSP Mutual Fund remains a joint venture between Indian financial firm, DSP Group and the world’s largest investment management firm. The MF has launched a new fund offer on 4th March 2021. However, DSP Floater Fund is suitable for investors who are seeking to generate regular income. Besides, investors should consider that their principal will be at moderate risk.
As per the SID, the scheme will close for subscription on March 17, 2021. It will re-open for continuous sale and repurchase within five business days from the date of allotment.
Basic Details of NFO:
| NFO Name | DSP Floater Fund |
| Subscription Period | March 4, 2021 – March 17, 2021 |
| NFO Type | Open-ended debt fund |
| Benchmark | CRISIL Short Term Gilt Index |
| Fund Manager | Mr. Saurabh Bhatia |
Investment Object:
The primary objective of the scheme is to generate regular income through investment predominantly in floating-rate and fixed-rate debt instruments (including money market instruments).
Minimum Investment:
As of SID, the minimum application amount stood at Rs. 500 and any amount thereafter for the investors who purchase units for the first time during the NFO.
On the other hand, the minimum SIP amount stood at Rs. 500 and in multiples of Re. 1 thereafter.
Further, the entry load and exit load not applicable to the scheme. Even so, the scheme is available in regular and direct along with growth options.
Investment Pattern:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Floating Rate Debt securities | 65% | 100% | Low to Medium |
| Fixed-Rate Debt Securities | 0% | 35% | Low to Medium |
The corpus of the Scheme will be divided into Units having an initial value of Rs. 10/- each. The Units can be purchased at this price during the NFO period of the Scheme.
The DSP Mutual Fund tries to collect a minimum subscription amount of Rs. 20 crores in the Scheme during the NFO period. In the event this amount is not raised during the NFO period, the amount collected under the Scheme will be refunded to the applicants as mentioned in the section, ‘Refund’.