Apr 3, 2008

Mutual Funds NFO - DSP Merrill Lynch MF rolls out FMP

DSP Merrill Lynch MF has unveiled a new scheme called DSP Merrill Lynch Fixed Maturity Plan 6 Months Series 5 and it is a close-ended income schemes with maturity profile of 6 months.

The primary investment objective of the schemes is to seek capital appreciation by investing in a portfolio of debt and money market securities. It is envisaged that the portfolio of each Scheme will display a maturity profile that is generally in line with the Term of the scheme. The schemes may also use fixed income derivatives for hedging and portfolio balancing. Both funds will invest can invest up to 100% in debt instruments and up to 100% in money market. These schemes may invest up to a maximum of 100% of the scheme's net assets in domestic securitised debt.

The scheme has two plans i.e. regular and institutional plan. Both plans will provide growth and dividend reinvest option. There will no entry load charged for the schemes due to its close-ended structure.DSP Merrill Lynch FMP 6 Months Series 5 charges an exit load of 0.75%, if the investment is redeemed before the maturity date. The minimum investment amount under regular plan will be Rs. 25,000 and in multiples of Re. 1 thereafter for the scheme. The scheme will have the minimum investment amount under institutional plan of Rs.1 crore and in multiples of Re. 1 thereafter.