DSP Mutual Fund has announced a New Fund Offer (NFO) for DSP Overnight Fund. The NFO period begins from January 7, 2019 and will close on January 9, 2019. The primary objective of the debt scheme is to seek to generate returns with a low amount of risk and to provide a high level of liquidity.
The overnight scheme will invest up to 100% of its assets in debt and money market instruments having maturity of up to 1 business day. The overnight securities include government bonds, non-convertible part of convertible securities, secured notes, units of liquid funds, etc. The DSP Overnight Fund will not invest in securitized debt, fixed income derivative instruments,foreign securities, and credit default swaps. The scheme will also not engage in short selling, lending and borrowing of securities.
Fund houses having been launching overnight schemes in the wake of the IL&FS defaults that caused liquid funds to face losses in September last year. Overnight funds are considered the safest due to their very short duration, which makes them least vulnerable to interest rate changes. Recently, ICICI Prudential launched an NFO for its overnight fund and fund houses like Indiabulls, Sundaram, Kotak, DSP filed for overnight funds with SEBI.
The Scheme will benchmark its performance against corresponding CRISIL Overnight Index. The benchmark index tracks performance of a money market portfolio with 100% allocation to Triparty Repo Dealing System (TREPS).
| Index Name | 1 Year Return | 3 Year Return | 5 Year Return |
| CRISIL Overnight Index | 6.09% | 6.23% | 6.94% |
*Returns data as of November 2018.
The scheme will be jointly managed by Mr. Kedar Karnik and Mr. Rahul Vekaria. The duo also jointly manage the DSP Ultra Short Fund which generated returns of 5.82%, 6.96%, and 7.71% over the last 1, 3, and 5 year periods respectively (as on January 04, 2019 – Direct Variant).
Key information about the Reliance Overnight Fund NFO:
| NFO Period | January 07, 2019 – January 09, 2019 |
| Minimum Application Amount | Rs. 500 |
| Exit Load | Nil |
| Benchmark | CRISIL Overnight Index |
| Fund Managers | Mr. Kedar Karnik and Mr. Rahul Vekaria |
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}