DSP Merrill feeder funds

DSP Merrill Lynch Fund Managers will soon launch feeder funds for the high networth Indian investors, who intend to invest in the overseas market.

The fund will, in turn, invest in Merrill Lynch's global sector funds or other vehicles. Soumendra Nath Lahiri, senior vice-president, DSP Merrill Lynch Fund Managers Limited, told mediapersons that the company had filed a draft prospectus with the Securities and Exchange Board of India (Sebi) for first of such funds.

"We are expecting to get the Sebi clearance in three months and launch the fund thereafter," Lahiri said, adding that the first feeder fund would be for investments that will be channelised into Merrill Lynch's gold sector fund, which is managed out of London.

According to the present rules, Indian investors can invest in global equity markets up to $25,000. "We will create a fund that will work as a pass-through to channelise such investments and add value to them with our global expertise," Lahiri said.

He said the company may launch similar feeder funds for global investments in other sectoral funds such as alternative energy or natural resources. Lahiri said the fund had recently launched a scheme for investment in midcap and small cap companies. It expects to garner approximately Rs 1,000 crore in the scheme of which about Rs 60 crore is expected to come from Pune's individual and corporate investors.