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FOR PROFESSIONAL INTERMEDIARIES ONLY

DSP BlackRock Dual Advantage Fund-Series 1-36M (Scheme)


NFO Period: Feb 16, 2012 to Feb 29, 2012
Why this Scheme?
Focus on downside protection Risk of capital loss is minimized by investing a major proportion of the portfolio in a diversified debt portfolio This part of the portfolio grows in value to ensure that the investors capital is preserved at maturity Benefits of high-growth potential of equity Though only a small allocation is made to equity, by investing this primarily in long-dated equity index options, investors stand to benefit more from this allocation compared to investing only in stocks Systematic equity allocation The equity allocation of the portfolio is invested in long-dated equity index options, the expiry of which is matched to the maturity of the Scheme1 This ensures that the investor is not exposed to any risks arising from active trading of options Diversified debt portfolio Debt allocation is into high credit quality, papers to minimise credit risk Low interest rate risk The debt allocation is managed like a Fixed Maturity Plan (FMP) The maturity of the underlying securities are matched to the maturity date of the Scheme to ensure that the investor is not exposed to any interest rate volatility Backed by strong investment team Stable team of experienced fund managers

Why Invest?
Peak interest rates Interest rates in the economy are expected to have reached the peak of the cycle and it is a good time to lock-in investments for the long-run at peak rates Attractive equity valuations, growth still robust Equity markets are trading at attractive valuations with the 1 year forward Sensex P/E at 13.9x (below the 15year average) Corporate earnings growth expectations of 17-18% for FY2012 still intact Indian economy is still the second fastest growing economy in the world and is expected to retain this position over the next 3-5 years as well

Advantages Over Investor-level Strategy


An investor can construct a portfolio similar to this Scheme by allocating equity monies to stocks or options and debt monies to FMPs. However, investment in this Scheme has advantages over such an approach. Investment and risk management processes are followed with a focus towards capital preservation Multiplier effect of investing in equity index call options compared to investing in stocks Access to long-dated equity options due to the institutional bandwidth; similar options cannot be accessed by individual investors due to lack of sufficient liquidity and volumes No active trading of options and associated risks with such a strategy are not involved as the expiry of options is matched with the maturity of the Scheme. An investor-level strategy would require active management of the option exposures.

How does it work?


Final Value Initial Investment
Growth Potential

Strong Investment Team


Combined expertise of 11 member equity team and 4 member fixed income team with active participation of the Chief Investment Officer Fixed income team aided by 5 member Risk & Quantitative Analysis team Closely integrated with BlackRocks global investment, research and risk teams
Capital Preservation 2

Focus on Risk Management


DSP BlackRock has developed robust risk management practices to ensure strict regulatory compliance and adherence to its strong internal policies. Independent Risk & Quantitative Analysis team ensures unbiased assessment of risk outside of the investment management team. This helps to ensure a strong risk control and compliance environment. In addition, the Risk & Quantitative Analysis team of DSP BlackRock works closely with the global risks team of BlackRock Inc. to adopt the best practices developed by them worldwide.

Start Date Debt

Maturity Date Equity

The figure shown above is only for illustration purposes and by no means should it be construed as indicative of the Schemes performance. There is no assurance of any capital protection or capital guarantee for investors in this Scheme. There is no assurance that the investment objective of the Schemes will be realized.
1The

long tenure index options are available only for June and December maturity. The equity participation can be provided only till the date of expiry of the latest available contract expiring before the maturity date of the Scheme. 2Capital preservation is a factor of the portfolio structure of the Scheme and not a feature offered as a guarantee. Please refer to the Scheme Information Document of the Scheme and detailed risk factors before investing.

Scheme Features
Type of scheme Maturity Date Options Minimum Application Amount Entry load Close-ended income scheme 02 March 2015 Growth & Dividend Payout Rs. 5,000 and in multiples of Re.1 thereafter NIL Not applicable (the units of the scheme will be listed on the Bombay Stock Exchange) CRISIL MIP Blended Index

Scheme Objective
The primary investment objective of the Scheme is to generate returns and seek capital appreciation by investing in a portfolio of debt and money market securities. The scheme also seeks to invest a portion of the portfolio in equity & equity related securities to achieve capital appreciation. As far as investments in debt and money market securities are concerned, the Scheme will invest only in securities which mature on or before the date of maturity of the Scheme. There is no assurance that the investment objective of the Schemes will be realized.

Asset Allocation
Debt securities*: 50% - 100% Money market securities: 0% - 25% Equity & equity related securities : 0% - 25%
*Debt securities may include securitized debt instrument upto 50% of the net assets Please refer to the Scheme Information Document for details on intended portfolio allocation of the Scheme.

Exit load

Benchmark

Disclaimers
Investment Objective: The primary investment objective of DSP BlackRock Dual Advantage Fund Series 1 36M (DSPBRDAF S1 36M) is to generate returns and seek capital appreciation by investing in a portfolio of debt and money market securities. The scheme also seeks to invest a portion of the portfolio in equity & equity related securities to achieve capital appreciation. As far as investments in debt and money market securities are concerned, the Scheme will invest only in securities which mature on or before the date of maturity of the Scheme. There is no assurance that the investment objective of the Scheme will be realized. Asset Allocation: *Debt Securities 50% to 100%, Money Market Securities/Instruments 0% to 25%, Equity and Equity related securities 0% to 25%. *Debt Securities may include securitized debt instruments upto 50% of the net assets. Terms of Issue: Minimum Investment Rs. 5,000/- and multiples of Re. 1/- thereafter. Options Growth & Dividend Payout. Declaration of NAV on every Business Day. Listing Units of the Scheme will be listed on the Bombay Stock Exchange Ltd. (BSE). Investors can buy/sell Units on a continuous basis on BSE during the trading hours like any other publicly traded stock. The Units under the Scheme cannot be directly redeemed with the Mutual Fund as the Units will be listed on the stock exchanges. Dematerialization - The Unit holders are given an option to hold the Units by way of an account statement (physical form) or in dematerialized form (Demat). The Units of the Scheme will be traded compulsorily in dematerialized form. Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSP BlackRock Investment Managers Pvt. Ltd. (AMC) Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Schemes objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Scheme can go up or down depending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. The Scheme are required to have (i) minimum 20 investors and (ii) no single investor holding>25% of the corpus of the Scheme. In case of non-fulfillment of the condition of minimum 20 investors, the investors money would be refunded, in full, immediately after the close of the New Fund Offer Period. In case of non-fulfillment with the condition of 25% holding by a single investor on the date of allotment, the application to the extent of exposure in excess of the 25% limit would be rejected, and the allotment would be effective only to the extent of 25% of the corpus collected. DSPBRDAF S1 36M is the name of the Scheme and does not in any manner indicate the quality of the Scheme, its future prospects or returns. For detailed Scheme specific risk factors such as liquidity risk, credit risk, reinvestment risk, interest rate risk, concentration risk, event risk, price risk, risk associated with equity and equity related instruments, risk of co-mingling, risk associated with derivatives, risk associated with securitized asset, risk associated with listing of units and risk associated with closed-ended scheme, please refer the relevant Scheme Information Document (SID). For more details, please refer the Statement of Additional Information, SID and Key Information Memorandum cum Application Forms, which are available at AMC and Registrar Offices and Investor Service Centres/ AMC website i.e www.dspblackrock.com. BSE Disclaimer: It is to be distinctly understood that the permission given by Bombay Stock Exchange Ltd. should not in any way be deemed or construed that the SID has been cleared or approved by Bombay Stock Exchange Ltd. nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the Scheme Information Document for the full text of the BSE Disclaimer. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.