DSP Mutual Fund has filed draft documents with the Securities and Exchange Board of India (SEBI) to launch its proposed Fixed Maturity Plans (FMPs) — Series 277, 278, and 279. These are close-ended debt schemes with investment tenures ranging from 30 days to 120 months, designed to generate income over a fixed investment period by investing in debt and money market instruments that mature on or before the scheme’s end date.
Scheme Type and Structure
The proposed FMPs are close-ended schemes, meaning investors cannot redeem units with the fund before maturity. However, units will be listed on the BSE, enabling investors to trade them in the secondary market.
- Listing: Within 5 business days from the date of allotment.
- Redemption: Permitted only at maturity, with proceeds to be dispatched within three working days thereafter.
Investment Allocation and Risk Classification
The allocation and risk exposure vary based on the scheme’s tenure:
- Short-term FMPs (≤12 months): 0–100% in debt and money market instruments.
- Longer-term FMPs (>12 months): 70–100% in debt securities and 0–30% in money market instruments.
- The Potential Risk Class (PRC) Matrix — which captures credit and interest rate risk — will be determined at launch.
Benchmark Indices and NAV Disclosure
Each FMP’s performance will be benchmarked to a relevant NIFTY debt index based on its tenure:
- Short-duration schemes: NIFTY Liquid Index
- Medium to long-duration schemes: NIFTY Long Duration Debt Index
The Net Asset Value (NAV) will be published on all business days by 11:00 p.m. on the AMFI and DSP Mutual Fund websites.
Fund Management and Expenses
- Fund Managers: Karan Mundhra, Shalini Vasanta, and Kunal Khudania will manage the schemes.
- Expense Ratio: Annual recurring expenses are capped at 1% of the scheme’s daily net assets.
- NFO Price: Fixed at ₹10 per unit.
- Exit Load: Nil (as redemption is only permitted at maturity).
Summary
With the launch of Series 277–279 FMPs, DSP Mutual Fund continues to expand its range of fixed-tenure debt offerings, providing investors an option for predictable, time-bound income with defined maturity exposure. The schemes aim to balance return stability and liquidity through disciplined investment in high-quality debt and money market instruments.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.