DSP Merrill Lynch Mutual Fund's short term bond fund has garnered Rs 343 crore during its initial public offer between August 30 and September 4. This takes the assets under management of the fund past the Rs 2,400 crore mark.
The chief executive of the fund, Alok Vajpeyi, said more than 95 per cent of the subscription was from institutional investors, who were anyway the target of the scheme. Among these the major participants have been high net-worth individuals, corporates and banks.
The fund's chief investment officer, S Naganath, said that one-third of the funds mobilised would in securities of less than 6 months maturity -- that isshort term corporate papers, commercial papers and other securitised papers.
Another third would be in floating rate instruments and the remaining third in securities of maturities more than 6 months such as gilts and longer term corporate papers.
With this kind of a break-up returns for the uniholders would be between 6 to 6.5 per cent. For the scheme the expense ratio has been maintained at 0.75 per cent against the one per cent usual in such schemes.
Vajpeyi said that they expected to further increase the corpus of the scheme from the current size. "Actually we had expected to mobilise somewhere in the reion of Rs 250 crore," he said, admitting that the inflows had taken him by surprise.
