DSP BlackRock Mutual Fund: Change in Fundamental Attributes of Schemes

DSP BlockRock Mutual Fund has decided to make certain changes in fundamental attributes of its various schemes. According to the fund, the changes have been made in tune with the directions issued by

Securities and Exchange Board of India (‘SEBI’).  With the intention of bringing about uniformity  and to standardize the scheme categories and characteristics across mutual fund industry, SEBI  had issued directions for the categorization and rationalization of all Mutual Fund Schemes

In tune with the directions of SEBI, DSP BlackRock Mutual Fund has decided to carry out certain changes in the features of some of their schemes. These changes modify some of the fundamental attributes of the schemes. DSP BlackRock Trustee Company Private Limited, Trustee to the Fund,  has approved all the changes as mandated by SEBI. They also have approved some other changes.

What is the time frame for exit? What are the conditions?

The fund has started intimating all the investors in the scheme about these changes and exit options. The proposed changes will be effective from March 16, 2018. The fund has offered  30 day exist period (either to redeem or switch the investments)  from February 14, 2018 till March 15, 2018, at applicable NAVs. The exit can be carried out without any exit load during the period. Those who intend to use the exit option have to fill up the requisite transaction slip and submit the same to any of their designated Official points of acceptance. The details are being published in newspapers too. Further details can also be collected by visiting the website www.dspblackrock.com . Investors have to take care of the tax implications.  The offer to exit from the scheme/s is not mandatory, but optional, at the discretion of the Unit Holder.

No action by investors during the period will be considered as acceptance of the amended  terms and consent for continuation in the schemes.

What are the salient features of changes proposed in the schemes by DSP BlockRock Mutual Fund?

The key changes in fundamental attributes approved by the trustees in respect of various schemes of DSP BlackRock Mutual Fund are mentioned below. Full details can be collected from the official website by visiting respective scheme details.

DSP BlackRock Equity Savings Fund :Asset allocation to debt and money market instruments will increase to maximum 35% of net assets of the scheme

DSP BlackRock Focus 25 Fund: Will now be able to invest in up to 30 stocks with a focus on multi caps

DSP BlackRock Micro Cap Fund:  Will be categorized as a ‘Small Cap’ fund (predominantly investing in companies beyond top 250 companies by market capitalization)

DSP BlackRock Opportunities Fund: Will be categorized as a ‘Large and Mid Cap’ fund (predominantly investing in companies between 1st to 250th by market capitalization)

DSP BlackRock Small and Mid Cap: Fund Will be categorized as a ‘Mid Cap fund’ (predominantly investing in companies between 101st to 250th by market capitalization)

DSP BlackRock World Energy Fund: Asset allocation to underlying fund will increase to minimum 95% of net assets of the scheme

DSP BlackRock World Gold Fund: Asset allocation to underlying fund will increase to minimum 95% of net assets of the scheme

DSP BlackRock World Mining Fund:  Asset allocation to underlying fund will increase to minimum 95% of net assets of the scheme

DSP BlackRock Income Opportunities Fund:  Will be categorized as ‘Credit Risk Fund’ (predominantly investing in corporate bonds which are AA and below rated instruments)

DSP BlackRock MIP Fund (Monthly income is not assured and is subject to the availability of distributable surplus):  Asset allocation to debt and money market instruments will be minimum 75% and to equity will be minimum 10% of net assets of the scheme

DSP BlackRock India T.I.G.E.R. Fund(The Infrastructure Growth and Economic Reforms Fund):    Asset allocation to securities of companies whose fundamentals and future growth could be influenced by the ongoing process of economic reforms and/or Infrastructure development theme will be minimum 80% of net assets of the scheme