DSP BlackRock launches first yield gap fund

KOLKATA: Asset management company DSP BlackRock Investment Managers would launch its first yield gap model fund named DSP BlackRock Dynamic Asset Allocation Fund.

Announcing the launch of the fund here today, Ajit Menon, executive VP (sales and marketing) said that the fund would dynamically manage the asset allocation between specified equity MF and debt MF schemes of DSP BlackRock MF depending upon the yield gap.

Menon said that the yield gap was being defined as the difference between the 10-year G-sec interest rates and the yield on equity.

Giving an example, he said that if the interest rates were higher than the yield on equity, then the allocation would automatically shift to debt and vice-versa.

Menon said that calculation of the yield gap would be done on a daily basis and the switch between debt and equity would be automatic.

Commenting upon the outlook on the equity market, Menon said that first half of 2014 would be challenging and the second half to be attractive.