key information memorandum cum application form - Rrfinance.com

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and the total investment/ exposure in HFCs shall not exceed 30% of the netassets of the Scheme.At the time of investment, the AMC would use Association of Mutual Funds inIndia (AMFI) defined sector cap.The list of sector/category of investment including rating and limits are subjectto regulatory changes.Types of instruments in whichthe Schemes shall investInvestment StrategyRisk Profile• Fixed Income instruments issued by the Government of India, state and localgovernments, government agencies, statutory bodies, public sectorundertakings, scheduled commercial banks, non-banking finance companies,development financial institutions, supra-national financial institutions,corporate entities and trusts.• Debt and Money Market securities and such other securities as may bepermitted by SEBI and RBI from time to time.• Pass through, Pay through or other Participation Certificates, representinginterest in a pool of assets including receivables• Money market instruments including but not limited to, treasury bills,commercial paper of public sector undertakings and private sector corporateentities, REPO, CBLOs (Collateralised Borrowing and Lending Obligation),CROMS, certificates of deposit of scheduled commercial banks anddevelopment financial institutions, Bills Re-discounting Scheme issued bypublic sector, private sector and foreign banks, government securities withresidual maturity of one year or less and other money market securities asmay be permitted by SEBI/RBI Regulations.• The debt securities could be listed, unlisted, privately placed including but,not restricted to, pass through certificates and strips.• The non-convertible part of convertible securities.• Units of Mutual funds as may be permitted by the SEBI (MF) Regulations.• Units of money market/liquid schemes of DSP BlackRock Mutual Fund or anyother mutual fund. Such investments will be within the limits specified underSEBI (MF) Regulations. AMC shall not charge any investment management feeswith respect to such investment.Any other like instrument as may be permitted by RBI/SEBI/ other regulatoryauthority, if any, from time to time.The Investment Manager will invest only in those debt securities that are ratedinvestment grade by a domestic credit rating agency authorised to carry outsuch activity, such as CRISIL, ICRA, CARE etc. In-house research by theInvestment Manager will emphasize on credit analysis, in order to determinecredit risk. The Scheme will invest only in such securities which mature on orbefore the scheduled maturity date.Mutual Fund Units involve investment risks including the possible loss ofprincipal. Scheme specific risk factors are summarized below:(i) Market Risk (ii) Credit Rating Risk (iii) Liquidity Risk (iv) Credit Risk (v) ReinvestmentRisk (vi) Interest Rate Risk (vii) Concentration Risks (viii) Risksassociated with investments in Securitized Assets (ix) Risk associated withListing of Units and Risk associated with Closed ended Schemes.4
Risk Management Strategies Risk Risk mitigants / management strategyInterest rate riskFall in the value of theportfolio due to upwardmovement of interestratesCredit riskIssuer’s inability to meetinterest and principalpayments on its debtobligationsLiquidity riskHigh impact costs forliquidation of securitiesheld in the portfolioAlthough this risk exists in a fixed incomeportfolio, the closed ended nature of the Schememitigates the risk as portfolio construction at thetime of inception leads to creation of a shortduration portfolio with securities whose maturitydate is in line with the maturity date of theScheme. Given the short duration of securities inthe portfolio, interest rate risk is anticipated to below.Credit risk management is an independent functionperformed by the Risk Management team. Theteam establishes and continuously monitors creditlimits for each issuer based on inputs from issuerfinancial statements, rating agencies etc. IssuerRisk Limits are imposed on a single issuer as well asan industrial group, for all the schemes. Issuer risklimits cover the quantum of exposure, maximumtenor and in some instances the type ofinstruments that can be purchased. Risk limits forissuers are assigned after discussion at an internalCredit Committee meeting. The endeavour is toconstruct a portfolio with high credit quality.In a closed ended product, liquidity risk on accountof underlying securities’ market liquidity does notexist as intermediate liquidity is not required.Liquidity access is done through contractualmaturity of the security, which is in line with theterm of the closed ended Scheme.Concentration riskConcentrated investmentin single security or singleissuerWe have internal fund manager guidelines formaximum exposure to a single issuer and alsoconcentration limits on account of large holdingsto avoid undue concentration in portfolio.Event riskPrice risk due to companyor sector specific eventThe endeavour is to invest in securities of issuers,which have high balance sheet strength in theinvestment horizon to eliminate single companyrisk.Plans available under theSchemesRegular PlanDirect PlanOptions available under theplans under the SchemesGrowth*Dividend Payout*default OptionMaturity DateThe Schemes will be fully redeemed at the end of their respective tenure.DSP BlackRock FTP – Series 21 - 18M will mature on August 26, 2014.If such day is not a Business Day, the immediately succeeding Business Day willbe considered as the maturity date. On the maturity date, all Units under theSchemes will be compulsorily, and without any further act by the Unit Holders,redeemed at the Applicable NAV of that day.Minimum Application Amount/Number of UnitsRs. 5,000/- and multiples of Re. 1/- thereafterBenchmark IndexFor Schemes having maturity of upto36 months:CRISIL Short Term Bond Fund Index.5
Page 1 and 2: DSP BLACKROCK FTP - SERIES - 21 to
Page 3: the view that the risk-reward is no
Page 7 and 8: Applicable NAV forrepurchaseDespatc
Page 9 and 10: Syndicate Bank (SCSB) at their desi
Page 11 and 12: DSP BLACKROCKAPPLICATION FORMPlease
Page 13 and 14: INSTRUCTIONSThese instructions form
Page 15 and 16: subscription, subject to compliance

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