DSP Aggressive Hybrid Fund, DSP Quant Fund: DSP Mutual Fund changes fundamental attributes of these schemes

DSP Mutual Fund has said that there will be a change in the fundamental attributes of its two equity schemes: DSP Equity & Bond Fund and DSP Quant Fund. Effective November 28, 2024, the scheme formerly known as the DSP Equity & Bond Fund will be called DSP Aggressive Hybrid Fund. 

Additionally, the scheme has amended its guidelines to allow for a maximum equity allocation of 80 per cent, up from the previous limit of 75 per cent. Furthermore, the scheme will now permit overseas investments, with a maximum exposure of up to 15 per cent.

The AMC said the revised investment strategy seeks to integrate both bottom-up and top-down methodologies, with an emphasis on assessing the intrinsic value of companies and prioritising those with a greater margin of safety. Additionally, the fund manager may utilize a covered call strategy to improve risk-adjusted returns.

DSP Quant Fund

The investment objective of DSP Quant Fund will be changed to deliver superior returns as compared to the underlying benchmark over the medium to long term through investing in equity and equity related securities. The portfolio of stocks will be selected, weighed and rebalanced based on a quant model theme.

The fund will predominantly invest in stocks from a universe of BSE 200 TRI selected based on quantitative measures like data availability, liquidity, market cap etc. Subsequently, the quant model will identify stocks within the universe that display the chosen factors such as value, quality, momentum, growth, etc. based on the quant model parameters. The model parameters may be modified as per the market regime.

In accordance with regulatory guidelines, unitholders have been granted a 31-day exit period from October 28 to November 27, 2024. Investors who do not agree to the modifications can opt to switch or redeem their investments without incurring any exit charges during this timeframe. Those who do not object to the proposed adjustment are not required to take any action.