Changes in Fundamental Attributes of DSP Global Allocation Fund of Fund

DSP Mutual Fund has announced changes to the fundamental attributes of DSP Global Allocation Fund of Fund. These changes, which include a shift in investment focus, a new name, a revised benchmark, and a change in risk classification, will be effective from March 11, 2025.

Change in Scheme Name

The fund will now be called DSP Income Plus Arbitrage Fund of Fund, replacing its earlier name. This renaming aligns with the shift in its investment objective.

The scheme will now be managed by Kaivalya Nadkarni (Arbitrage) and Shantanu Godambe (Debt).

Updated Objective and Asset Allocation

The revised objective focuses on generating income by investing in units of debt-oriented mutual fund schemes and arbitrage schemes. The updated asset allocation states that 95%-100% of the fund’s assets will now be invested in these categories. The earlier strategy, which involved exposure to global markets, has been removed.

Change in Benchmark

The benchmark has been changed from the MSCI All Country World Total Return Index to a combination of:

• CRISIL Dynamic Bond A-III Index (60%)
• NIFTY 50 Arbitrage Index (40%)

The risk classification has been adjusted from “Very High” to “Moderate” due to the shift from international equity exposure to debt and arbitrage investments.

Exit Option for Investors

Investors who do not agree with these changes can exit the scheme without any exit load during a 32-day exit window from February 7, 2025, to March 10, 2025. Investors who are fine with the changes are not required to take any action.

These changes alter the structure and strategy of the fund, shifting its focus from global exposure to a domestic income-based approach.

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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 scheme-related documents carefully.