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DSP to hit market with open-ended value fund with 35% in global stocks

NFO opens Nov 20 and closes Dec 4; scheme starts with Nifty500 as universe

Nifty 50 | DSP group | Markets

Ashley Coutinho  |  Mumbai 

Private equity
The scheme also proposes to invest up to 35 per cent in debt and money market instruments | Illustration: Ajay Mohanty

DSP Investment Managers plans to hit the market with DSP Value Fund, an open ended equity scheme that will follow a value investment strategy that offers exposure to quality companies at reasonable valuations after taking into consideration factors such as price-to-book ratios, return on equity and long-term sectoral trends.

The scheme starts with Nifty500 as a universe and will allocate 65 per cent in Indian equities and up to 35 per cent in global equities. The international exposure is designed to provide diversification and a potential source of alpha generation to investors.

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The scheme also proposes to invest up to 35 per cent in debt and money market instruments and keep in cash or arbitrage whenever enough investment opportunities meeting the valuations criteria are not available.

The NFO will open on November 20 and close on December 4.

“In the current low interest rate world, good companies rarely come cheap. Hence it becomes important to apply disciplined rules to identify such companies at reasonable prices. Investors in this scheme should have a long term orientation to endure phases of underperformance that is a part of the value investing journey.” said Kalpen Parekh, President, DSP Investment Managers.

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First Published: Wed, November 18 2020. 17:55 IST