DSP Blackrock confident of raising Rs 1,000 cr through NFO

DSP Blackrock Investment Managers Pvt Ltd is hopeful of raising Rs 1,000 crore under its latest new fund offer – Dynamic Asset Allocation Fund.

The scheme, meant for the long-term returns, is designed to balance the investments in 10 year government securities (G-Secs) and the equities for larger returns.

"We are optimistic about 2014. Investors’ confidence seems to be returning to the equities market mainly due to good monsoon and on the anticipation of a decisive verdict in the upcoming general elections. We expect to raise Rs 1,000 crore from DAAF," Dhaval Dalal, fund manager and Executive Vice-President of the Fund House, told media persons here on Monday.

An open-ended fund of funds scheme, DAAF from the DSP Blackrock stable will make balanced allocation of funds to its equity schemes DSP Blackrock Top 100 Equity Fund and DSP Blacrock Equity Fund and debt schemes of DSP Blackrock Strategic Bond Fund and DSP Blackrock Short Term Fund.

Opened on January 17 for subscription, the DAAF is the first mutual fund NFO by the DSP Group since 2009.

Explaining the uniqueness about the NFO, Dalal mentioned that the scheme would use the yield-gap ratio, a ratio of yields from debt market to equity market, for determining the asset allocation.

He added that retail investors are still hesitant to invest in the equities market.

"We are seeing the change and the retail investors will return to the equities market. DAAF is a product that serves the purpose of risk-free bonds investments as well as high yielding equities," he said.

> rutam.vora@thehindu.co.in

COMMENT NOW