Securities and Exchange Board of India (‘SEBI’) had issued directions for the categorization and rationalization of all Mutual Fund Schemes in order to bring about uniformity in practice across the industry and to standardize the scheme categories and their characteristics. In this regard, certain changes will be carried out in the features of some of our schemes, resulting in changes in fundamental attributes of certain schemes of DSP BlackRock Mutual Fund. DSP BlackRock Trustee Company Private Limited (Trustee to the Fund) has approved all the changes as mandated by SEBI, along with a few other changes.
We are writing to you as you have invested in one or more of the schemes below. The changes in each scheme are mentioned in the table below, briefly. You can also see the complete set of changes made in each scheme by clicking on its name.
DSP BlackRock Equity Savings Fund – Asset allocation to debt and money market instruments will increase to maximum 35% of net assets of the scheme
DSP BlackRock Focus 25 Fund – Will now be able to invest in up to 30 stocks with a focus on multi caps
DSP BlackRock Micro Cap Fund – Will be categorized as a ‘Small Cap’ fund (predominantly investing in companies beyond top 250 companies by market capitalization)
DSP BlackRock Opportunities Fund – Will be categorized as a ‘Large and Mid Cap’ fund (predominantly investing in companies between 1st to 250th by market capitalization)
DSP BlackRock Small and Mid Cap Fund – Will be categorized as a ‘Mid Cap fund’ (predominantly investing in companies between 101st to 250th by market capitalization)
DSP BlackRock World Energy Fund – Asset allocation to underlying fund will increase to minimum 95% of net assets of the scheme
DSP BlackRock World Gold Fund – Asset allocation to underlying fund will increase to minimum 95% of net assets of the scheme
DSP BlackRock World Mining Fund – Asset allocation to underlying fund will increase to minimum 95% of net assets of the scheme
DSP BlackRock Income Opportunities Fund – Will be categorized as ‘Credit Risk Fund’ (predominantly investing in corporate bonds which are AA and below rated instruments)
DSP BlackRock MIP Fund (Monthly income is not assured and is subject to the availability of distributable surplus) – Asset allocation to debt and money market instruments will be minimum 75% and to equity will be minimum 10% of net assets of the scheme
DSP BlackRock India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) – Asset allocation to securities of companies whose fundamentals and future growth could be influenced by the ongoing process of economic reforms and/or Infrastructure development theme will be minimum 80% of net assets of the scheme
The proposed changes will come into effect on March 16, 2018. Note that there is an option to exit, i.e., either to redeem or to switch your investments to any other scheme of the Fund, within a 30 day exit period starting from February 14, 2018 till March 15, 2018 (both days inclusive and up to 3.00 pm on March 15, 2018) at applicable NAV, without payment of any exit load, by filling the requisite transaction slip and submitting the same at any of our designated Official Points of Acceptance. For understanding relevant tax implications, unitholders are advised to consult their tax advisors. For details, please refer to the SID of the Schemes and the Statement of Additional Information available at www.dspblackrock.com. For further details, you may also refer the notice in this regard which shall be published in newspapers and will also be uploaded on our website.
No further action needs to be taken if you accept the mandatory changes to the Fund. This will indicate your consent to the required changes to the Fund. The offer to exit from the scheme/s is optional, at the discretion of the Unit Holder, not compulsory.
(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)