Mutual Fund News : DSP Mutual Fund Launches DSP Value Fund

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DSP Mutual Fund has launched DSP Value Fund.

It is an open ended equity scheme that will follow a value investment strategy.

The investment objective of the scheme is to seek to generate consistent returns by investing in equity and equity related or fixed income securities which are currently undervalued.However, there is no assurance that the investment objective of the scheme will be realized.

Under normal circumstances, 65% to 100% of the funds portfolio will be invested in Equity and Equity related instrumentsincluding derivatives. It can also invest up to 35% of its assets in international companies to benefit from their innovation & expertise.

The fund can also hold up to 35% of its assets in Debt& Money Market Instruments, and has flexibility to invest up to 10% of its assets in Units issued by REITs and InvITs.

DSP Value Fund will aim to apply disciplined rules to identify good companies at reasonable prices (valuations). The fund will accumulate a portfolio of stocks available at a discount to its intrinsic value through a process of Discovery.

The Discovery Process would be through identification of such stocks, whichhave attractive valuations in relation to earnings or book value or current and/or future dividends and are availableat a price, which can be termed as a bargain. This may constitute stocks, which have depreciated for a short perioddue to some exceptional circumstance or due to market correction phase or due to lack of interest in investing in asector, which has significantly underperformed the market. Such stocks are considered to have intrinsic value becauseof their business models and show potential for smart growth in the future.

The universe of stocks for DSP Value Fund will be defined as those stocks whose pricesare low relative to their fundamentals, their historic performance, their book values, theirearnings and cash flowpotential, current and/or future dividends, having positive earnings momentum.

The scheme’s performance will be benchmarked against Nifty 500 Value 50 TRI (Total Return Index).

DSP Value Fund will be managed by MrM. Suryanarayanan and MrJay Kothari.

The NFO opens for subscription on November 20, 2020 and closes on December 04, 2020. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and any amount thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).