DSP BlackRock Investment Managers Pvt Ltd today announced the launch of DSP BlackRock A.C.E. (Analysts’ Conviction Equalized) Fund-Series 1, a multi cap fund (a close-ended equity scheme investing across large cap, mid cap and small cap stocks). The fund is claimed to be an attractive proposition for investors looking for better risk-adjusted returns given the potential for long-term capital appreciation with likely lower volatility. DSP BlackRock A.C.E. Fund is based on the belief that a consistent investment process precedes strong performance, and will be managed by M Suryanarayan. It will open for subscription during its New Fund Offer period from 17 November, 2017 to 1 December, 2017.
According to the asset management company, the scheme portfolio will consist of 45-55 high conviction ideas picked across sectors and market capitalizations. The scheme will avoid sector and stock allocation bias by having sectoral allocation in line with Nifty 500 and equal weights for all stocks within a sector. Stock weights will be rebalanced quarterly and stock inclusions/exclusions will be done real-time. The scheme also aims to protect the portfolio against falling markets through put options at a reasonable price.
DSP BlackRock Investment Managers says that the three main pillars on which this scheme is based are people, process and downside protection. Top investment ideas are generated by analysts from a 16-member equity investment team. “Access to these high-conviction equity ideas based on a foundation of a robust investment process coupled with potential downside protection when markets are trading at higher-than-average valuation levels are reasons why investors can consider the fund,” it says.
Talking about the fund, Kalpen Parekh, President, DSP BlackRock Mutual Fund, said, “DSP BlackRock A.C.E. fund is a manifestation of our strong belief that process precedes performance when it comes to effective fund management. Through the A.C.E. fund, we are creating a market expansion opportunity for new investors as well as conservative investors, as the fund offers a blend of stock selection by a disciplined process of our analysts’ team along with use of low cost put options that would provide downside protection to the portfolio if the markets were to fall.”