The changes will be effective from November 28. The fund house informed about these changes through a notice-cum-addendum.
DSP Equity & Bond Fund
The new name of DSP Equity & Bond Fund will be DSP Aggressive Hybrid Fund. The scheme will invest 65-80% in equity and equity related instruments, 20-35% in debt instruments. The changed investment strategy of the fund will be to follow an active investing strategy and will prefer a combination of bottom-up and top-down approach with regards to investment in equity and equity related securities.
In picking out individual investment opportunities for the portfolio, the Investment Manager will focus on the intrinsic value of the business. The investment manager will attempt to mitigate risk by prioritizing businesses that offer a higher margin of safety with respect to the intrinsic value.
DSP Quant Fund
The investment objective of DSP Quant Fund will be changed to deliver superior returns as compared to the underlying benchmark over the medium to long term through investing in equity and equity related securities. The portfolio of stocks will be selected, weighed and rebalanced based on a quant model theme. The fund will predominantly invest in stocks from a universe of BSE 200 TRI selected based on quantitative measures like data availability, liquidity, market cap etc. Subsequently, the quant model will identify stocks within the universe that display the chosen factors such as value, quality, momentum, growth, etc. based on the quant model parameters. The model parameters may be modified as per the market regime.The process from universe selection to portfolio construction would be largely systematic and optimized with the aim of maximizing the return within prudent risk constraints. The portfolio of the Scheme will be reviewed constantly and rebalanced on at least monthly basis based on the output of the model. The fund manager will review, update and maintain the model on an ongoing basis and make changes as and when necessary.
Although the scheme will predominantly invest in stocks as per the quant model theme, it retains the flexibility to take some exposure beyond the theme based on the Fund manager’s discretion. The Fund manager may use some discretion to adapt investment rules/factors to novel market phases, at inflection points and to manage volatility.
For both the schemes, the fund house is offering an exit window to the unit holders of 31 days (minimum 30 days) from October 28, 2024 to November 27, 2024 (both days inclusive). During the exit option period, unit holders not consenting to the change may either switch to any other scheme of the fund house or redeem their investments at applicable net asset value without payment of exit load subject to provisions of applicable cut-off time as stated in the Scheme Information Document (SID) of the schemes.
All transaction requests received on or after November 28, 2024 will be subject to applicable exit load (if any), as may be applicable to the schemes mentioned above. Unit holders who have pledged / encumbered their units will not have the option to exit unless they submit a letter of release of their pledges / encumbrances prior to submitting their redemption / switch requests.
Investors who have registered for Systematic Investment Plan (SIP) in the schemes and who do not wish to continue their future investments must apply for cancellation of their SIP registrations. The redemption warrant/cheque will be mailed or the amount of redemption will be credited to the unit holder’s bank account within three working days from the date of receipt of redemption request.
