Mumbai / Chennai, February , 2018: DSP BlackRock Investment Managers Pvt. Ltd., one of India’s premier asset management companies, today 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.
DSP BlackRock Liquid ETF is a convenient solution for utilizing the cash balance while trading on the exchange. 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.
Gauri Sekaria, Vice President, ETF and Passive Investments at DSP BlackRock Investment Managers Pvt. Ltd, is the fund manager for this fund.Gauri has over 12 years of experience in management of ETFs and Index Funds.
Kalpen Parekh, President, DSP BlackRock Investment Managers Pvt. Ltd said, “DSP BlackRock Liquid ETF is the second addition to our passive funds stable. It’s an interesting idea positioned to proactive equity investors who want a smart liquidity solution while trading on the stock exchange. Many times, the proceeds from their trades are not utilised optimally. We are happy to bring out a product that would help capital market participants get the most out of their cash balance by keeping their money working in the interim period. We have successfully been managing active funds for over two decades and are now complementing our product range via launch of passive funds.”
Anil Ghelani, CFA, Senior Vice President, DSP BlackRock Investment Managers Pvt. Ltd said, “DSP BlackRock Liquid 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.”