DSP BlackRock FMP – Series 210 – 36M is a close-ended income scheme which is suitable for investors who are looking for income over an investment horizon of approximately 36 months and want to get their money invested in money market and debt securities. Moderate investors who do not want to take high risk can invest in such kind of funds. The risk factor is medium and the scheme will mature on April 29, 2020.
Here are a few things one must know before investing in this fund:
New Fund Offer time period
The NFO opens on April 11, 2017, and closes on April 17, 2017.
The primary objective of the scheme is to generate returns and capital appreciation by investing in a portfolio of debt and money market securities. However, the scheme will invest only in such securities which mature on or before the date of maturity of the scheme. One should also know that there is no assurance that the investment objective of the scheme will be realized or not.
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The schemes under this NFO with have a tenure greater than 36 months and less than or equal to 60 months.
The cumulative gross exposure through debt and money market securities will not exceed 100% of the net assets of each scheme.
The schemes will not participate in repos in corporate debt securities
The schemes will not engage in short selling of securities and securities lending and borrowing.
The schemes will not participate in credit default swaps.
The schemes shall not invest in fixed income derivatives instruments and in foreign debt securities.
The schemes shall not invest in securitized debt.
The scheme will participate in repo/reverse repo
Liquidity of the Scheme
The units of the schemes cannot be redeemed by the investors directly with the Mutual Fund until the maturity of the schemes and there will be redemption by the Mutual Fund on the maturity of the schemes. However, investors who wish to exit/redeem before the maturity date may do so through the stock exchange mode, if they have opted to hold units in a demat form, by mentioning their demat details on the NFO application form.
The unit holders are given an option to hold units by way of an account statement (physical form) or in dematerialized form (demat).
The units of the schemes will be listed on the Mutual Fund segment of BSE Limited (BSE) within 5 business days from the date of allotment. The Trustee may at its sole discretion list the units under the schemes on any other recognized Stock Exchange at a later date.
The entry load is nil and the exit load is also nil. The units under the schemes cannot be directly redeemed with the Mutual Fund as the units will be listed on the Stock Exchange/s.
Minimum Application Charges
The minimum application amount is only applicable during the New Fund Offer Period where an application will start from Rs 5000 and can get increased in multiples of Re 1 thereafter.
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The benchmark for the scheme is CRISIL Composite Bond Fund Index
It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.