DSP Merill to launch Balanced Fund

MUMBAI, APRIL 28: DSP Merrill Lynch Asset Management India is launching an open-ended Balanced Fund, which proposes to generate long-term...

MUMBAI, APRIL 28: DSP Merrill Lynch Asset Management India is launching an open-ended Balanced Fund, which proposes to generate long-term capital appreciation as well as current income from a portfolio of equity and equity-related securities and fixed income securities. The Fund will remain open for subscription from May 3 to May 14, 1999.

In case of exit by an investor within three years of entry, he will be charged a contingent deferred sales charge CDSC based on the period of holding of units. The fund will charge a CDSC of two per cent, 1.5 per cent and one per cent should the investor opt for an exit within a year, two years and three years respectively.

Addressing a news conference, chairman of DSP Merrill Lynch Asset Management, Hemendra Kothari said here today that the scheme has been devised keeping in mind the changing investment needs of different segments of investors. Painting a bullish picture of Indian economy, Kothari said the current economic scenario offers an attractive opportunityfor investors to invest in the stock markets through professionally managed mutual funds.

The managing director Asia Pacific, Merrill Lynch Asset Management Hong Kong, James Leighton said: quot;We are exploring the opportunities to launch sectoral funds and funds focussed at institutional pools of money. This we plan to launch only if there is enough demand from the end-users.quot;

Reflecting on launching any more, funds Leighton said at the Merrill Lynch philosophy to launch new products depends on the demand for the product and the size of the funds. quot;A meaningful size of the product leads to economies of scale and the returns are even better,quot; said Leighton.

According to the chief investment officer of DSP Merrill Lynch AMC, S Naganath: quot;In the portfolio of every asset management company there need to be four building blocks and with the launch of the Balanced Fund the DSPML AMC has completed its family of funds spanning the entire risk-return spectrum and to cater to all the needs of investorcommunity.quot;