DSP Mutual Fund has launched DSP S&P BSE Liquid Rate ETF (DSP BLRETF), an open-ended scheme that replicates the S&P BSE Liquid Rate Index, providing investors with easy cash management and low risk. The scheme is ideal for investors with idle margin accounts, as it invests in DSP BLR ETF units, which may yield additional returns by investing in overnight instruments with 1D maturity. The DSP BLR ETF’s new fund offer will be available for subscription starting on March 15th, 2024, and will conclude on March 20th, 2024.
DSP S&P BSE Liquid Rate Index generally has a lower volatile return profile due to investment in low-risk securities in overnight markets. DSP BLR ETF can be utilized as a cash equivalent margin for trading, enhancing the utilization of idle funds and generating no return in broker’s accounts. The scheme requires a minimum of 95% to 100% investment in low-risk instruments such as Tri-Party REPOs, Repo in Government Securities, Reverse Repos, and other over-night instruments approved by RBI and SEBI.
Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund said, “DSP S&P BSE Liquid Rate ETF is designed to always let investors’ money remain in action and hence makes it a useful product for brokers with large retail clients, PMS providers, F&O brokers, Institutions who invest in direct equities HNIs and retail investors who trade on the stock exchange.”
