Skip to main content

Mutual Fund Review: DSP BlackRock Short Term Fund

Name: DSP BlackRock Short Term Fund-G
Type: Open Ended Debt Short -Term
Fund Manager: Mr. Sujoy Kr. Das
Inception Date: September 04, 2002

Short Term Debt Funds are the investment option to park money for a short period of time, typically less than a year. These are relatively safer investment avenue and provide stable returns along with the preservation of capital. DSP ML Short Term Fund is an open-ended debt scheme and seeks to generate income commensurate with prudent risk, from a portfolio constituting of money market securities, floating rate debt securities and debt securities.

It is mandated to invest 50%-100% of its assets in debt & money market instruments having average maturity upto a year and floating rate debt securities whose coupons are reset at least once a year and 0-50% in debt instruments having average maturity greater than a year and floating-rate debt security where the next reset date is more than 367 days from the date of purchase. As per its latest disclosed portfolio, the scheme has allotted 19.4% of its assets in debt instruments and rest in cash and equivalent.
 
The scheme has acquired an impressive track record over the years and has comfortably outperformed its benchmark and peers during selected time period. Its focus on active duration management and credit calls helped it to deliver compounded annualized returns of 5.84% since its inception. Also over a short period of six months it has posted annualized return of 6.60 % while its benchmark and peers trailed with the returns of 5.96% and 5.51% respectively. Expense Ratio of the scheme is 0.84% as on May 31, 2006 which is lower than the category average of 0.88%.
 
The corpus of the scheme has grown 41% over a period of one year and stands at Rs 134 crore as on May 2006. The scheme has invested 39.7% of its assets in commercial paper, 18.56% in bonds and 24.74% in securitised debt comprising of good quality rated papers such as AAA and P1+. It has allocated 38% to P1+ rated papers, 14.86% in AA+ rated papers and almost 24.74% in AAA (SO) rated papers. Portfolio modified duration is 148 days as on May 2006. The fund has actively moved its assets between debt and liquid instruments over the last one year with average allocation in debt instruments at 36%.
 

Minimum investment amount is Rs 25000 and offers both growth and dividend options. The scheme is benchmarked against Crisil Liquid Fund index. It charges no entry and exit load.

DSP BlackRock Short Term Fund has been a consistent performer and is suitable for the investors who are looking for a safety of debt instruments with short term horizon.
 

Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...
Read more

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...
Read more

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...
Read more

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now