DSP Blackrock Mutual Fund launches Dual Advantage Fund

DSP Blackrock Mutual Fund is launching a new closed end income fund - DSP Blackrock Dual Advantage Fund - Series 11(36 months).

The new fund offer is currently open for subscription and closes on January 21. The Structure The fund will invest 75-80% in debt instruments that will mature in line with the duration of the fund, with the balance 20-25% of the corpus to be invested in equities. The portfolio would be actively managed to optimize returns between both asset classes.

The debt portfolio will invest only in securities that 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.

Units will be available at Rs 10, and there is no entry load during the NFO. After the NFO, the Units of the Scheme will be listed on the NSE, where investors can buy or sell units at market prices.

Why invest?

Through this fund, you can preserve your capital, and gain 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 in an emergency, you may have to do so at a discount to the NAV