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DSP Mutual Fund is now focussed on promoting its DSP Liquid ETF scheme with the broking and high networth fraternities.
In a span of about eight months, DSP Liquid ETF has notched up average assets under management of about ₹100 crore, Anil Ghelani, Senior Vice-President, DSP Mutual Fund, told BusinessLine here.
“We are now looking to push this product as part of our overall plan to raise the visibility of our passive products,” Ghelani, who was in the capital, said.
DSP Liquid ETF is basically a scheme targeted at investors in the capital market looking to park idle cash in a convenient way.
How the fund works
On selling his shares, an investor can instruct his broker to purchase DSP Liquid ETF of an equal amount. This will ensure that from the date of settlement (T+2) itself, the investor will start earning dividends (subject to availability of distributable surplus). This way, the investor need no longer wait to receive and deposit the cheque into his account, and again wait for it to be cleared before investing the sum in a liquid fund.
“We are now urging brokers to sensitise high networth investors that they can benefit from parking funds in liquid ETFs,” he said.
Slowly, more mutual fund houses have started showing interest in this product (Liquid ETF) and filed offer documents in recent days with the market regulator for such products, Ghelani noted.
BlackRock’s move
Ghelani maintained that BlackRock’s move in May this year to quit its India JV and sell its entire stake to DSP Group has not substantially altered the fund house’s approach to passive funds.
DSP Mutual Fund also plans to launch another fund in the January-March quarter. It will be a BFSI fund (an index fund) that would give exposure to a diversified set of stocks in the banking and financial services sectors. The portfolio includes NBFCs and insurers.
DSP Mutual Fund is also setting up an international business to showcase opportunities for investments in India and how DSP Mutual Fund can help manage such offshore investments in India, he said.
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