Mumbai: DSP BlackRock Mutual Fund expects to mop up around Rs1,500 crore from its DSP BlackRock Focus 25 Fund.
“Based on conversations with our institution partners and initial response, we expect to raise around Rs1,500 crore from our new Focus 25 Fund,” DSP BlackRock’s chief investment officer, S Naganath, told reporters on the sidelines of a press meet in Mumbai on Thursday.
The Focus 25 Fund is scheduled to open on 23 April and closes on 21 May.
The Focus 25 Fund is an open-ended equity growth scheme investing largely in companies, which are amongst the top 200 companies by market capitalization. The portfolio will limit exposure to companies beyond the top 200 companies by market capitalization to 20% of the net asset value, Naganath said.
The scheme will normally hold equity and equity-related securities including equity derivatives of up to 25 companies.
In a market, which has risen significantly over the last one year, there has been significant performance divergence not only among sectors but also amongst stocks within these sectors. This highlights the fact that besides sector selection, stock selection is extremely important.
We expect engineering and capital goods industry to do well in the near future, Naganath said.
“We believe that this fund will appeal greatly to investors who are seeking a concentrated equity portfolio,” Naganath said, adding the fund will launch more new products in 2010.
DSP BlackRock Mutual Funds assets under management (AUM) is estimated at Rs22,200 crore.