DSP Merrill to mop up Rs 750 cr via 3 funds

DSP Merrill Lynch Mutual Fund will launch three new schemes and is looking at raising funds above Rs 750 crore. DSP ML MF will mop up Rs 250 crore through the Infrasturcture Growth and Economic Reforms (TIGER) fund, which will be invested 90-100 per cent in equities.

The fund will focus on sectors and companies that could benefit from the ongoing economic reforms and the continuing development in infrastructure, fuelled by public and private sector investment, S Nagnath, chief investment officer and joint president, DSPML MF said.

The other funds under the Savings Plus Fund will add two more schemes to its kitty the Savings Plus Agressive Fund that will invest up to 30 per cent in equity and 70 per cent in debt and Savings Plus Conservative that will invest 10 per cent in equities and balance in debt.

Investors are offered each scheme for a minimum initial investment of Rs 1,000 and multiples of Re 1 thereafter between April 27 and May 20, 2004.

The current Savings Plus plan will be renamed as Savings Plus Moderate fund that will invest in 20 per cent equity and rest in debt. Adressing a press conference, Alok Vajpeyi, president, said, "India is on the cusp of strong GDP growth. Soon after the elections next month, we expect to see an increase in the pace of economic reforms along with a renewed thrust on infrastructure development. As a result, we at DSPML Fund Managers are bullish on India's capital markets, both for medium and long term."

India like Japan and US in the 80s and 90s, respectively, is moving towards a high growth GDP path, driven by infrastructure growth and economic reform.

By identifying and investing in companies that primarily gain from this growth driven increase in market capitalisation, TIGER fund seeks to take advantage of the anticipated benefits from infrastructure developments and resultant value creation, according to the MF.