DSP Mutual Fundlaunches DSP Multi Asset Allocation Fund

Good long-term investing outcomes require one to ensure survival first. And this is tough- given how most investors react emotionally when market hit peaks by investing more or when markets go down, many end up exiting, even when they didn’t need the money.

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, goldETFs, other commodities and ETF &Exchange Traded Commodity Derivatives (ETCDs), aiming to reduce overall risk.

“The most underrated factor in investing is time. Our multi asset fund adds global stocks, precious metals & bonds to Indian equities, thus enabling investors to take advantage of cycles of each of these and eventually stay invested in the fund for longer due to lower fluctuations as against a single asset class,” says Kalpen Parekh, MD & CEO, DSP Mutual Fund. 
DSP MAAF can invest between 35-80% in equities, of which up to 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 up to 10% in REITs &InvITs. Long-term investors will also get benefit of indexation when it comes to capital gains taxation, as applicable to Debt schemes. The New Fund Offer for DSP MAAF will open for subscription on September 7th, 2023 and will close on September 21st, 2023.