DSP Mutual Fund has launched DSP S&P BSE Liquid Rate ETF, an open-ended scheme replicating/ tracking the S&P BSE Liquid Rate Index.
The new fund offer of the fund is open for subscription and will close on March 20.
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The scheme will be managed by Anil Ghelani and Diipesh Shah. The scheme will be benchmarked against the S&P BSE Liquid Rate Index.
The scheme seeks to provide returns before expenses that correspond to the returns of the S&P BSE Liquid Rate Index, subject to tracking errors.
There are no plans under the Scheme. The scheme offers only a growth option.
The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereof.
The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) is up to 1%. : No exit load will be levied on redemptions made by market makers / large Investors directly with the fund in creation unit size.
The scheme will invest a minimum of 95% and up to 100% in low-risk instruments like tri-party repos, repo in government securities, reverse repos, and any other similar overnight instruments as may be provided by RBI and approved by SEBI.
The fund offers investors easy cash management with ample liquidity and low risk. The scheme is suitable for investors who have money lying idle in a margin account which doesn’t yield any returns. The scheme invests in overnight instruments with 1 day maturity.
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DSP S&P BSE Liquid Rate Index generally has a lower volatile return profile due to investment in low-risk securities in overnight markets. Apart from better utilization of money lying idle and generating no return in the broker’s account, DSP BLR ETF can also be used as a cash equivalent margin for trading (subject to NSE and BSE approval), according to the press release by the fund house.
“DSP S&P BSE Liquid Rate ETF is designed to always let investors’ money remain in action and hence makes it a useful product for brokers with large retail clients, PMS providers, F&O brokers, Institutions who invest in direct equities HNIs and retail investors who trade on the stock exchange,”says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.
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