DSP Mutual Fund announced the launch of DSP Multi Asset Allocation Fund (DSP MAAF), an open-ended scheme that aims to offer investors long-term returns like what equities may offer but with added resilience against market falls. DSP MAAF aims to benefit investors by diversifying their investments between asset classes like domestic equities, international stocks, debt instruments, gold ETFs, other commodities and ETF & Exchange Traded Commodity Derivatives (ETCDs), aiming to reduce overall risk.
The New Fund Offer for DSP MAAF will open for subscription on September 7 and will close on September 21.DSP MAAF can invest between 35-80% in equities, of which upto 50% can be in international equities. It can also invest 10-50% in debt, 10-50% in Gold ETF, 0-20% in other commodities through ETFs & ETCDs and upto 10% in REITs & InvITs.
DSP MAAF will allocate assets based on 3 key but simple factors – long-term expected returns from different asset classes, their realized volatility and the correlation among each asset class. Long-term investors will also get benefit of indexation when it comes to capital gains taxation, as applicable to Debt schemes.
