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DSP Merrill Lynch to unveil liquidity fund
Our Market Bureau
MUMBAI, March 3: DSP Merrill Lynch Mutual Fund is launching an open-ended liquid fund -- DSP Merrill Lynch Liquidity fund, on March 6. The scheme will be open for initial subscription from March 6-9 and will reopen for subscription and redemption on an on-going basis from March 16. The structure of the portfolio is likely to have approximately 80 per cent in approved money-market securities and around 20 per cent in debt securities. The fund plans to raise a minimum subscription of Rs 1 crore with an option to retain up to Rs 200 crore during the initial offer. The liquidity fund will have no front-end load attached to it, but the investors will have to pay a nominal exit load of 0.25 per cent of the applicable net-asset value (NAV) if the amount redeemed has been invested in the fund for less than four business days from the date of allotment of units.According to the mutual fund, the main benefit for investors is liquidity with redemption available in 24 hours. The new scheme is designed primarily forcorporates, trusts and other institutional investors. The initial offer price for the scheme will be Rs 10 per unit with a minimum application amount of Rs 5 lakh and amounts in multiples of Rs 1 lakh over Rs 5 lakh during the initial offer period. The entire initial issue expenses of the scheme will be borne by DSP Merrill Lynch AMC. The recurring expenses to be charged to the scheme are limited to one per cent. The liquidity fund will seek to generate returns for investors from a portfolio constituting money market and high-quality short-term debt securities. The options available in this scheme will be a growth option for capital appreciation and dividend option for regular income. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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