DSP BlackRock Mutual Fund launches DSP BlackRock A.C.E.

DSP BlackRock Investment Managers Pvt. Ltd, an asset management company in India, here today (16.2.2018) announced the launch of DSP BlackRock A.C.E. (Analysts’ Conviction Equalized) Fund – Series 2, a multi cap fund (a close ended equity scheme investing across large cap, mid cap and small cap stocks).

DSP BlackRock A.C.E. Fund – Series 2 (the scheme) is based on the belief that a consistent investment process precedes strong performance. The three main pillars on which this scheme is based are People, Process and Smart Protection. Top investment ideas are generated by analysts from a 16 member equity investment team.

Access to these high-conviction equity ideas based on a foundation of a robust investment process coupled with smart downside protection which has elements of risk management and profit booking are reasons why investors can consider the fund.

A key differentiator in DSP BlackRock A. C. E. Fund – Series 2 is the smart management of capital during market volatility, which is important to leverage in the right manner, for potential wealth creation. In case markets fall, the Put Options’ (on NIFTY 50) value increases as NIFTY 50 falls below invested level (Strike price). A certain portion of Put Options can then be exercised to book profits and the proceeds would be invested in the stock portfolio. This limits downside in the stock portfolio allowing more capital to compound from market dips. In case the markets rise, for every ~12-15% gain in the stock portfolio, the Scheme would endeavor to distribute gain of ~8-10% as dividends. This allows investors to monetize gains from the stock portfolio. Dividends shall be distributed as per dividend policy mentioned in the Scheme.

The scheme portfolio will consist of approximately 45-55 high conviction ideas picked across sectors and market capitalizations. The scheme will avoid sector and stock allocation bias. It will do so by having sectoral allocation in line with NIFTY 500 and equal weights for all stocks within a sector. Stock weights will be rebalanced quarterly and stock inclusions/exclusions will be done real-time.

In addition to idea generation from analysts and portfolio managers as well as in-depth company analysis, DSP BlackRock follows its proprietary benchmarking framework. Stocks are evaluated and rated based on a mix of seven key parameters.

The fund will be managed by M. Suryanarayan and will be open for subscription during its New Fund Offer period from 16 February, 2018 to 01 March, 2018.