Targets capital market investors looking to park idle cash conveniently; NFO period from February 22nd to March 8th, 2018
DSP BlackRock Investment recently announced the launch of DSP BlackRock Liquid ETF, tailored to requirements of capital market investors who wish to park idle cash in the most convenient way.
When an investor sells his shares, he can instruct the broker to purchase DSP BlackRock Liquid ETF of an equal amount. This will ensure that from the date of settlement (T+2) itself, the investor will start earning dividends (subject to availability of distributable surplus).
Investors, therefore, will no longer have to go through the inconvenience of receiving and depositing a cheque into their bank account and then waiting for the cheque to clear before they can invest in a liquid fund, as they did earlier.
The scheme aims to provide current income, commensurate with relatively low risk while providing a high level of liquidity, primarily through a portfolio of Collateralized Borrowing & Lending Obligation (CBLO), Repo in Government Securities, Reverse Repos and similar other overnight instruments.
The Scheme shall have only one Plan and one Option which shall be Daily Dividend Reinvest. The minimum application amount during the NFO period would be Rs. 5,000 and in multiples of Re. 1/- thereof. The New Fund Offer opens on February 22, 2018 and will close on March 8, 2018.