GetPaidIndia.com

DSP ML Focus 25 Fund

March 3rd, 2007

DSP Merrill Lynch Mutual Fund has submitted their draft offer documents for its upcoming scheme - DSP ML Focus 25 Fund - to SEBI recently.

The DSP ML Focus 25 Fund will be an open ended equity growth scheme. The scheme will be available in Regular plan and Institutional plan.

The objectives of the scheme, according to the draft offer document filed, is  as follows: “The primary investment objective of the Scheme is to generate long-term capital growth from a portfolio of predominantly equity and equity-related securities including equity derivatives. The Scheme will normally hold a core position of between 20 and 30 common stocks. The Scheme may hold a limited number of additional securities at times such as when the Investment Manager is accumulating new positions, phasing out and replacing existing positions, or responding to exceptional market conditions. The Scheme may also invest in debt and money market securities, for defensive considerations and / or for managing liquidity requirements.”

The scheme would be investing a minimum of 65% and a maximum of 100% in Equity and equity related securities. Out of this, a minimum of 0% and a maximum of 25% would be in investments in ADRs, GDRs and foreign securities. A minimum of 0% and maximum of 35% would be invested Debt and Money Market Securities.

S&P CNX Nifty Index is the benchmark index against which the fund performance would be measured.

Growth, Dividend (Payout / Reinvestment) are available.

The minimum application amount for this scheme is Rs. 5000 under the retail plan. Subsequent purchases can be made for which the minimum application amount should be for Rs. 1000. Investors choosing SIP route can invest for a minimum installment SIP amount of Rs. 2000.

For the regular plan, the entry load will be 2.25% for purchase amount < Rs. 5 crore – 2.25%  of applicable NAV. The exit load will be 0.5% of applicable NAV if redeemed within 6 months of holding period and nil if investment is held for over 6 months.

For SIP investments, an entry load of 1% of applicable NAV will be charged while exit load will be 1.25% for investments are held for less than 2 years and NIL for investments 2 years or over.

Entry Filed under: Equities, Mutual Funds, DSP Merrill Lynch Mutual Fund, Draft Offer Document filings