DSP Blackrock Mutual Fund launches DSP Blackrock Dual Advantage Fund

DSPBlackrock Mutual Fund has launched a closed end income fund - DSP Blackrock Dual Advantage Fund - Series 17(35 months). The new fund offer is currently open for subscription and closes on August 21.

The Structure

The scheme will invest 50%-95% of assets in debt securities, another 25% in money market securities and 5%-25% in equities. The debt portion of the scheme will invest in securities with a view to hold them till the maturity of the Scheme and are rated investment grade by a rating agency.

In the equities portfolio the fund manager will adopt a top down approach. The Fund expects to achieve down side protection by investing in debt securities maturing on or before the duration of the scheme. The fund expects the equity exposure to help investors achieve superior risk adjusted returns over the tenure of the fund.

The minimum investment amount is Rs 5,000 and in multiples of Rs 10 thereafter. After the NFO, the Units of the Scheme will be listed on the BSE, where investors can buy or sell units at market prices.

Why invest?

Dual protection fund helps you preserve your capital, with a marginal exposure to equities. This has the probability to give you higher risk adjusted returns.

Why not invest

Since the fund is close ended, liquidity will be very low. In case you wish to sell units you may have to do so at a discount to the NAV