DSP BlackRock Mutual Fund today launched an open-ended fund of funds scheme, 'DSP BlackRock Dynamic Asset Allocation Fund', which will enable investors in long-term wealth creation.
The new fund is open for subscription from January 17 through 31.
As per the fund house, the fund will dynamically manage the asset allocation between the specified equity mutual fund schemes and debt mutual funds schemes of DSP BlackRock Mutual Fund, based on the relative valuation of equity and debt markets.
"There is a need for a product that offers asset allocation on a dynamic basis. The new scheme could be an interesting investment opportunity for investors," company's President and chief investment officer S Naganath told reporters here.
He also said the 'yield gap ratio', which is the ratio of debt market to equity market yiled, would be used for determining the asset allocation.
"Investing today is challenging for many investors as they can be confused by market volatility. Our new scheme seeks to eliminate confusion about timing the market," EVP and business development Head Pankaj Sharma said.
He also said the new fund is essentially a product for retail investors and the fund house hopes to raise around Rs 500 crore during the initial fund offer period.
DSP BlackRock MF is a joint venture between the DSP Group and BlackRock in which DSP Group holds 60 per cent stake and the fund house has an average assets under management of Rs 32,642 crore at end December.
