DSP BlackRock Mutual Fund launches the DSPBR Dynamic Asset Allocation Fund

DSP BlackRock has announced the launch of its fund-of-fund - DSPBR Dynamic Asset Allocation Fund. The fund opens for subscription on January 17 and closes on January 31, 2014.

The investment objective of the open-ended fund of funds scheme is to dynamically manage the asset allocation between the specified equity and debt mutual funds schemes of DSP BlackRock Mutual Fund, based on the relative valuation of equity and debt markets, said a news release from the fund house.

The scheme would primarily invest in DSP BlackRock Top 100 Equity Fund and DSP BlackRock Equity Fund for equity exposure. While for debt exposure the scheme will invest in DSP BlackRock Strategic Bond Fund and DSP BlackRock Short Term Fund to get debt exposure.

“Asset allocation is a key ingredient in driving portfolio performance. There is a need for a product that offers asset allocation on a dynamic basis,” said S. Naganath, President & CIO, DSP BlackRock Investment Managers.

The scheme would use the yield gap metric to assess market valuations.