DSP Mutual Fund has filed draft documents with SEBI (Securities and Exchange Board of India) for DSP Overnight Fund. This is the fourth overnight fund to be drafted with SEBI in this week alone. The open-ended fund will invest in securities maturing in one day. This characteristic makes overnight funds low risk as they are least affected by interest rate changes. It also provides investors with liquidity over a short period of time.
DSP Overnight Fund will invest upto 100 percent of its assets in debt and money market market instruments with maturity of up to one business day. The scheme may invest in liquid schemes of mutual funds and will not invest in securitized debt and foreign securities. The minimum application amount will be Rs. 5,000 and the scheme will have no exit load.
DSP is the latest to enter the overnight funds space. Along with DSP, Kotak Mutual Fund also filed draft offer documents with SEBI for an overnight fund on Thursday (Nov. 22). This week, two other fund houses also filed for drafts with SEBI – IDFC and Reliance. Last week, ICICI Prudential launched an NFO for its overnight fund.
HDFC Overnight Fund, SBI Overnight Mutual Fund and UTI Overnight Fund have one-year returns of 6.07 percent, 6.13 percent and 5.45 percent, respectively. (As on Nov. 21, 2018)
CRISIL Overnight Index will be used as a benchmark for the Kotak Overnight Fund. CRISIL Overnight Index tracks the performance of the newly instated Triparty Repo Dealing System (TREPS) as its underlying asset.
| Index Name | 1-yr Returns (%) | 3-yr Returns (%) | 5-yr Returns (%) |
| CRISIL Overnight Index | 6.03 | 6.24 | 6.98 |
*Returns data as of October, 2018
The fund will be co-managed by Kedar Karnik and Rahul Vekaria. Karnik and Vekaria co-manage DSP Ultra Short Fund, DSP Low Duration Fund. These have given one-year returns of 6.54 percent and 6.87 percent, respectively. (As on Nov. 20, 2018)
Other Funds by DSP Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| DSP Equity Direct Plan | 14.11 | 2678.36 | Multi Cap Fund |
| DSP US Flexible Equity Fund | 14.08 | 179.18 | Sectoral/Thematic Fund |
| DSP Equity & Bond Fund | 11.68 | 7189.75 | Aggressive Hybrid Fund |
| DSP Tax Saver Fund | 11.05 | 4366.38 | ELSS |
| DSP Focus Direct Plan | 10.35 | 2961.32 | Multi Cap Fund |
| DSP Equity Opportunities Fund | 10.28 | 5559.95 | Large & Mid Cap Fund |
| DSP Midcap Fund | 10.01 | 5719.8 | Mid Cap Fund |
| DSP Top 100 Equity Fund | 9.85 | 3097.9 | Large Cap Fund |
| DSP Government Securities Fund | 9.28 | 210 | Gilt Fund |
| DSP Dynamic Asset Allocation Fund | 9.16 | 844.71 | Dynamic Asset Allocation |
| DSP Short Term Fund | 8.11 | 3628 | Short Duration Fund |
| DSP Strategic Bond Fund | 8.11 | 1350.51 | Dynamic Bond Fund |
| DSP Banking & PSU Debt Fund | 8.09 | 1629.22 | Banking and PSU Fund |
| DSP 10Y G-Sec Fund | 8.02 | 36.57 | Gilt Fund with 10 year constant duration |
| DSP Low Duration Fund | 7.91 | 4993.08 | Low Duration Fund |
| DSP Global Allocation Fund | 7.85 | 30.35 | Sectoral/Thematic Fund |
| DSP Equity Savings Fund | 7.38 | 1619.88 | Equity Hybrid Saving Fund |
| DSP Savings Direct Plan | 7.18 | 45.17 | Money Market Fund |
| DSP Ultra Short Fund | 6.9 | 4005.47 | Ultra Short Duration Fund |
| DSP Liquidity Direct Growth | 6.89 | 17472.46 | Liquid Fund |
{Data as on Feb 19, 2020; Source: Value Research}