Insights

Notice of Change in Fundamental Attributes of DSP Equity & Bond Fund and DSP Quant Fund

November 7, 2024 . FundsIndia Desk

Bulletin

Investors are hereby informed that DSP Mutual Fund is making certain changes in the fundamental attributes of DSP Equity & Bond Fund and DSP Quant Fund as detailed below. These changes align with SEBI (Mutual Funds) Regulations, 1996 and SEBI’s Master Circular dated June 27, 2024 on mutual fund scheme categorization and rationalization.

The rationale, details of the changes, and the exit option for unit holders are provided below:

DSP Equity & Bond Fund

Sr. No.	Particulars	Existing Scheme Features	Proposed Scheme Features (Changes highlighted in bold)
1	Name of the Scheme	DSP Equity & Bond Fund	DSP Aggressive Hybrid Fund
2	Category of the Scheme	Aggressive Hybrid Fund	Aggressive Hybrid Fund (No change in category)
3	Equity Allocation	65% – 75%	65% – 80%
4	Fixed Income Allocation	25% – 35%	20% – 35%
5	Covered Call Strategy	Not enabled	Enabled for generating additional returns through option premiums
6	Investment in Overseas Securities	Not enabled	Enabled to improve the risk-reward profile

For more details on asset allocation and investment strategy, please refer to Addendum 1

DSP Quant Fund

Sr. No.	Particulars	Existing Scheme Features	Proposed Scheme Features
1	Category of the Scheme	Thematic Fund	Thematic Fund (No change in category)
2	Investment Objective*	Quant model with focus on growth, value, and quality factors.	Quant model with expanded factors (fundamental, macro, technical)
3	Portfolio Re-balancing Frequency	As per quant model	Ongoing, at least monthly
4	Single Stock Weight	Limited as per quant model	Capped at 10%
5	Sector Weight	Limited as per quant model	Allowed deviation from benchmark

For more details on investment strategies, product labeling, and risk factors, refer to Addendum 2.

Exit Option for Unit Holders

In accordance with SEBI regulations, an Exit Option is available for unit holders who do not consent to the changes. Key details of the exit process are as follows:

Exit Option Period: October 28, 2024 to November 27, 2024 (both days inclusive).
Effective Date of Changes: November 28, 2024.
Process: During the Exit Option Period, unit holders may switch to another scheme of DSP Mutual Fund or redeem units at the applicable NAV without exit load.
Transaction Requests Post-Effective Date: Subject to exit load as applicable.
Redemption/Switch Requests: Can be submitted at any DSP Mutual Fund official point of acceptance.

Additional Notes

For Pledged Units: Unit holders with pledged units must release their pledge before submitting redemption/switch requests.
SIP Investors: Investors registered for SIP who do not wish to continue must apply for cancellation.
Disclaimer: This exit offer is optional. No action is needed if the unit holder consents to the changes.

The changes above have been approved by the Board of Directors of DSP Asset Managers Private Limited and DSP Trustee Private Limited. SEBI has also acknowledged the proposed changes via email dated September 27, 2024.

For more information, please refer to the addendums attached above