DSP Mutual Fund has launched the DSP Corporate Bond Fund through a new fund offer (NFO). The NFO has started today (23rd August 2018) and will end on 5th September 2018. This fund will mainly invest in corporate bonds rated AA+ and higher. The scheme will be open-ended and feature zero exit load allowing investors to invest in and redeem fund units on all business days.
DSP Corporate Bond Fund will be benchmarked against the CRISIL Composite Bond Fund Index. This index has featured 1 year, 3 year and 5 year returns of 1.48%, 7.52% and 8.82%. This composite index is designed to track the performance of a debt portfolio comprising corporate bonds rated AA and higher as well as low risk government securities.
This new debt scheme will invest between 80 to 100% of assets in various high quality corporate bonds rated AA+ and above. Additionally, the fund may invest up to 20% of assets each in relatively lower rated corporate bonds (AA and below) and Government debt/money market instruments. Additionally the scheme may invest up to 10% of its assets in InvITs (Indfrastructure Investment Trusts) and REITs (Real Estate Investment Trusts). Subject to regulatory, DSP Corporate Bond Fund will also retain the flexibility to invest up to 35% of assets in foreign securities.
The following are indicative allocation of various instruments that the scheme will invest in*:
| Instrument Type | Indicative Allocations (% of total assets) | |
| Minimum | Maximum | |
| Corporate Bonds and Securitised Debt rated AA+ and higher | 80 | 100 |
| Corporate Bonds and Securitised Debt rated AA and lower | 0 | 20 |
| Government Issued Debt and Money Market Instruments | 0 | 20 |
| InvIT and REIT units | 0 | 10 |
The values provided are indicative and actual values will differ based on fund manager’s discretion and prevailing market conditions.
DSP Corporate Debt Fund will be managed jointly by Vikram Chopra and Saurabh Bhatia. This team also managed other leading debt schemes such as DSP Government Securities Fund, DSP Strategic Bond Fund and DSP Banking & PSU Debt Fund. Among these, the DSP Banking & PSU Debt Fund is one of the most popular debt schemes offered by the fund house with net assets worth Rs. 1,433 crores as on 31st July 2018.
Key Features of the DSP Corporate Bond Fund NFO:
| Minimum Investment | Rs. 1000 |
| Benchmark | CRISIL Composite Bond Fund Index |
| Fund Manager | Vikram Chopra and Saurabh Bhatia |
| NFO Period | 23rd August to 5th September 2018 |
| Options Available | Growth, Monthly/Quarterly Dividend (Payout/Reinvest) |
Other Funds by DSP Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| DSP Equity Direct Plan | 14.11 | 2678.36 | Multi Cap Fund |
| DSP US Flexible Equity Fund | 14.08 | 179.18 | Sectoral/Thematic Fund |
| DSP Equity & Bond Fund | 11.68 | 7189.75 | Aggressive Hybrid Fund |
| DSP Tax Saver Fund | 11.05 | 4366.38 | ELSS |
| DSP Focus Direct Plan | 10.35 | 2961.32 | Multi Cap Fund |
| DSP Equity Opportunities Fund | 10.28 | 5559.95 | Large & Mid Cap Fund |
| DSP Midcap Fund | 10.01 | 5719.8 | Mid Cap Fund |
| DSP Top 100 Equity Fund | 9.85 | 3097.9 | Large Cap Fund |
| DSP Government Securities Fund | 9.28 | 210 | Gilt Fund |
| DSP Dynamic Asset Allocation Fund | 9.16 | 844.71 | Dynamic Asset Allocation |
| DSP Short Term Fund | 8.11 | 3628 | Short Duration Fund |
| DSP Strategic Bond Fund | 8.11 | 1350.51 | Dynamic Bond Fund |
| DSP Banking & PSU Debt Fund | 8.09 | 1629.22 | Banking and PSU Fund |
| DSP 10Y G-Sec Fund | 8.02 | 36.57 | Gilt Fund with 10 year constant duration |
| DSP Low Duration Fund | 7.91 | 4993.08 | Low Duration Fund |
| DSP Global Allocation Fund | 7.85 | 30.35 | Sectoral/Thematic Fund |
| DSP Equity Savings Fund | 7.38 | 1619.88 | Equity Hybrid Saving Fund |
| DSP Savings Direct Plan | 7.18 | 45.17 | Money Market Fund |
| DSP Ultra Short Fund | 6.9 | 4005.47 | Ultra Short Duration Fund |
| DSP Liquidity Direct Growth | 6.89 | 17472.46 | Liquid Fund |
{Data as on Feb 19, 2020; Source: Value Research}