DSP Mutual Fund Files Draft for Fixed Maturity Plan (FMP) With SEBI

DSP Mutual Fund has submitted draft documents to SEBI for its proposed Fixed Maturity Plan (FMP) – Series 277 to 279, with investment tenures ranging between 30 days and 120 months. The schemes are close-ended debt funds to invest in debt and money market instruments that mature on or before the scheme’s end date. 

The investment objective is to generate income over a fixed investment period.

Scheme Type and Structure

The schemes are close-ended, which means units cannot be redeemed before maturity directly with the fund. However, investors can trade the units on the BSE, where they are proposed to be listed within 5 business days from allotment. Redemption will only occur at maturity, and proceeds are expected to be dispatched within three working days from that date.

Investment Allocation and Risk Classification

For schemes with shorter tenures of up to 12 months, investment may range from 0% to 100% in debt and money market instruments. Longer-duration schemes may allocate 70-100% to debt securities and 0-30% to money market instruments. The Potential Risk Class (PRC) Matrix will be determined at the time of launch based on the scheme’s credit and interest rate exposure.

Benchmarks and NAV Disclosure

Performance will be benchmarked against corresponding NIFTY debt indices, depending on the scheme’s tenure, from the NIFTY Liquid Index for shorter durations to the NIFTY Long Duration Debt Index for longer ones. The Net Asset Value (NAV) will be published on all business days on AMFI’s and DSP’s websites by 11:00 p.m.

Fund Management and Expenses

The schemes will be managed by Karan Mundhra, Shalini Vasanta, and Kunal Khudania. The annual recurring expenses are capped at 1% of the scheme’s daily net assets. The New Fund Offer (NFO) price is fixed at ₹10 per unit, and no exit load applies.

Read More: Bajaj Finserv Mutual Fund Cuts Minimum Investment for Equity Savings Fund!

Conclusion

DSP’s FMP Series 277 to 279 is awaiting SEBI approval. Once cleared, the AMC will announce the New Fund Offer period and other final details.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.