DSP BlackRock Dynamic Asset Allocation Fund

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DSP BlackRock Dynamic Asset Allocation Fund - An Open Ended Fund of Funds Scheme

This Open ended Fund of Funds Scheme is suitable for investors who are seeking* :

1. Long-term capital growth

2. Investment in units of one or more equity mutual funds and debt mutual funds of DSP BlackRock Mutual Fund

3. Moderate Risk**

*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.

**Risk may be represented as:
Low: Investors understand that their principal will be at high risk
Moderately Low: Investors understand that their principal will be at moderately low risk
Moderate: Investors understand that their principal will be at moderate risk
Moderately High: Investors understand that their principal will be at moderately high risk
High: Investors understand that their principal will be at high risk

Published in: Economy & Finance, Business

DSP BlackRock Dynamic Asset Allocation Fund

  1. 1. This Open Ended Fund of Funds Scheme is suitable for investors who are seeking* : • Long-term capital growth • Investments in units of one or more equity mutual funds and debt mutual funds of DSP BlackRock Mutual Fund *Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them. Riskometer MAY 2017
  2. 2. 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 Mar-07 May-08 Jul-09 Sep-10 Nov-11 Jan-13 Mar-14 May-15 Jul-16 Nifty50Investing is a roller-coaster ride 2 The ups and downs of equity markets Positive Confident Euphoric Surprised Nervous Worried Panic- stricken Defeated Hopeful EncouragedThrilled Positive Confident Cautious Thrilled Nervous Worried Hopeful Indifferent Data source: Internal; Bloomberg Hopeful Worried May-17
  3. 3. The Three Big Questions! 3 Should I invest now? I think I will wait to see if there is revival of growth in major economies of the world I think the domestic market has run up too much, too quickly, I should wait for a correction before investing When to invest? Should I invest everything at one go? I should may be stagger my investments over the next few months to take advantage of rupee cost averaging I think I should invest only a small amount now, I’ll invest the rest after observing the results How much to invest? Should I invest in equity or debt? I think yields have come down, I should stay away from the fixed income market I think equity market has run up, I will wait for a correction to enter the markets Where to invest? In grappling with these three questions, one ends up staying on the sidelines most of the time
  4. 4. 4 Presenting DSP BlackRock Dynamic Asset Allocation Fund (Scheme) Note: For Scheme specific risk factors and more details, please read the Scheme Information Document of the Scheme. 4 Allocate automatically. Invest peacefully.
  5. 5. How does this Scheme work? Simple principle: Higher the earning potential of an asset class, higher the allocation towards it 5 The Yield Gap helps in identifying the relative attractiveness between equity and fixed income to determine the appropriate asset allocation
  6. 6. The Yield Gap Model
  7. 7. How does the Scheme assess relative attractiveness between debt & equity? * The Scheme also considers Modified Yield Gap model for determining asset allocation. For complete information about the Yield Gap Model, Modified Yield Gap Model and overall investment strategy of the Scheme, investors are requested to read the Scheme Information Document of the Scheme. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. 7 Case 1: If equity is more attractive than debt Case 2: If debt is more attractive than equity  Nifty 50 earnings yield – 9%; 10Y G-Sec yield – 5%  Nifty 50 earnings yield is much higher relative to 10Y G- Sec yield  Yield Gap ratio of 0.55 suggests that allocation to equity should be higher  Nifty 50 earnings yield – 6%; 10Y G-Sec yield – 8%  10Y G-Sec yield is much higher relative to Nifty 50 earnings yield  Yield Gap ratio of 1.33 suggests that allocation to debt should be higher Debt Markets Equity Markets 10Y G-Sec Yield Nifty 50 Earnings Yield (Earnings/Price) Yield Gap Ratio* = 10Y G-Sec Yield/ Earnings Yield of Nifty 50 The benchmark 10Y G-Sec Yield is a good indicator of the long-term interest rates in the economy Earnings yield on Nifty 50 is an indicator of the return on investment from equity markets How is the Yield Gap identified? Comparing the Yield Gap ratio relative to its historical trend will determine the appropriate asset allocation
  8. 8. Yield Gap: How are the allocation bands identified? 8 Yield Gap Ratio Equity Allocation <1.10 90% 1.10 - 1.20 80% 1.20 - 1.30 70% 1.30 - 1.40 60% 1.40 - 1.50 50% 1.50 - 1.60 40% 1.60 - 1.70 30% 1.70 - 1.80 20% >1.80 10% Modified Yield Gap Ratio Equity Allocation <0.7 90% 0.7 - 0.8 80% 0.8 - 0.9 70% 0.9 - 1 60% 1 - 1.1 50% 1.1 - 1.2 40% 1.2 - 1.3 30% 1.3 - 1.4 20% >1.4 10% Equity Allocation at different Yield Gap Levels If the difference between the Yield Gap ratio and the Modified Yield Gap ratio is less than 0.05, which is an indicator of a flat yield curve, then allocation bands based on a moderate version of the Yield Gap, called the Modified Yield Gap, will be applied. Yield Gap = 10Y G Sec Yield Earnings Yield of Nifty 50 Modified Yield Gap = 1Y G Sec Yield Earnings Yield of Nifty 50 Source: Scheme Information Document of the Scheme. The scheme will allocate its investments in Underlying Equity Schemes and Underlying Debt Schemes of DSP BlackRock Mutual Fund.; for more details on scheme please refer to slide no. 23. 8
  9. 9. Update on DSP BlackRock Dynamic Asset Allocation Fund
  10. 10. Current Asset Allocation 10 Current Asset Allocation  Due to recent run up in equity, Nifty earnings yields have decreased modestly  Yields in 10Y G-Sec segment of the yield curve have increased.  Steepening of yield curve has led to the Yield Gap Ratio being operational (10Y G-Sec Yield / Earnings Yield of Nifty 50)  Allocation: Equity 40% and Fixed Income 60% Key Metrics Nifty 50 EPS 427.22 Nifty 50 Earnings Yield 4.44% 10 Yr G Sec Yield 6.79% 12 Month T Bill 6.41% Reference Yield Gap Ratio 1.526 Reference Modified Yield Gap Ratio 1.426 Delta 0.100 Operational Ratio Yield Gap Equity Allocation 40% G-Sec yield curve has steepened, Nifty 50 earnings yield has decreased and 10Y yields have increased Source: Internal’ Bloomberg | Data as of 31st May, 2017. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 May-15 Nov-15 May-16 Nov-16 May-17 NIFTY 50 earnings yield (LHS) 10 Yr Gsec 12 Month T-Bill
  11. 11. Performance Comparison 11 Inception Date – 6th Feb, 2014. Data as of 31st May, 2017. Source: MFIE. Less than 1 year Absolute returns, Greater than or Equal to 1 year Compound Annualized returns. For SEBI prescribed format please refer to slide 24 to 26. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. 1 Month 3 Months 6 Months YTD 1 Year 2 Year 3 Year Since Inception Drawdown DSP BlackRock Dynamic Asset Allocation Fund 0.89 4.18 5.91 8.31 13.82 9.18 9.28 10.17 -7.02% Nifty 50 Index 3.20 8.35 16.98 17.42 17.91 6.78 9.97 14.05 -22.52% CRISIL Balanced Fund Aggressive Index 2.68 6.36 11.14 11.97 15.61 8.13 10.47 12.66 -13.26% Since Inception Performance Chart DSP BlackRock Dynamic Asset Allocation Fund has shown consistent performance with less downside as compared to equity indices May-17 9 10 11 12 13 14 15 16 Feb-14 Oct-14 Jun-15 Feb-16 Oct-16 DSP BlackRock DAAF Nifty 50 CRISIL Balanced Fund Aggressive Index
  12. 12. Historical performance of Yield Gap Model
  13. 13. Asset Allocation changes can be swift 1313 The model’s dynamic nature has been demonstrated when it made major changes to asset allocation in a relatively short period of time.
  14. 14. Equity allocation as recommended by the Yield Gap model 14 Equity Allocation Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 60% 50% 40% 40% 40% 2016 40% 50% 40% 40% 40% 40% 40% 40% 40% 40% 50% 60% 2015 10% 10% 10% 10% 10% 10% 10% 30% 40% 40% 40% 40% 2014 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 2013 30% 30% 30% 30% 30% 30% 30% 20% 20% 10% 10% 10% 2012 30% 30% 30% 30% 30% 30% 40% 40% 30% 30% 30% 30% 2011 30% 40% 40% 50% 50% 50% 20% 20% 20% 30% 30% 30% 2010 20% 20% 20% 20% 30% 30% 40% 40% 30% 30% 30% 30% 2009 80% 90% 90% 90% 90% 90% 80% 70% 50% 40% 30% 20% 2008 30% 30% 10% 10% 20% 20% 20% 20% 20% 30% 40% 60% 2007 50% 50% 50% 60% 50% 50% 50% 50% 50% 50% 40% 30% 2006 80% 80% 70% 60% 60% 50% 50% 50% 50% 50% 50% 50% 2005 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 2004 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 2003 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 2002 80% 70% 70% 70% 70% 70% 80% 90% 90% 90% 90% 90% 2001 10% 10% 10% 10% 20% 40% 40% 50% 60% 70% 70% 70% 2000 - - - - - - - - - - 10% 10% This slide exhibits equity allocation as recommended by the Yield Gap Ratio Model from Nov 2000 onwards. The colors in the table above depict increase (green) /decrease (red) /no change (white) in allocation from previous month. Data source: Internal. 14 If one managed asset allocation according to the Yield Gap ratio, what would have happened?
  15. 15. 15 Range of returns over 3 and 5 year time periods Performance Range: 5 year holding period Performance Range: 3 year holding period Maximum Minimum Yield Gap Model Nifty 50 CRISIL Bal Fund Aggressive Index CRISIL Short Term Index 37% 7% 25% -1% 18% 3% 10% 5% 47% 5% 49% -7% 31% -1% 10% 4% Yield Gap Model Nifty 50 CRISIL Bal Fund Aggressive Index CRISIL Short Term Index This slide exhibits the maximum & minimum returns (rolling CAGR returns) generated by investment made on any date for a 5 and 3 year period for period starting on Oct 31, 2003. The performance of the YG and PE models is based on select DSP BlackRock Mutual Fund (DSPBR) schemes. Schemes considered for equity allocation from Feb 2004 till Mar 2017: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: (i) Feb 2004 - May 2007: DSPBR Bond Fund (ii) May 2007 till Mar 2017: DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. Data source: Internal. Price Earnings Model 26% 5% Maximum Minimum Price Earnings Model 40% 0% Note: An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. An investment product that utilizes an auto asset allocation strategy based on the Yield Gap Model can be a strong addition to any investor’s core portfolio 15
  16. 16. Performance across market cycles: Bull Phases 16 Rank CAGR Performance Absolute Performance 1 Nifty 50 NA 100% 2 YG Model NA 75% 3 CRISIL Bal F NA 59% 4 PE Model NA 54% Rank CAGR Performance Absolute Performance 1 Nifty 50 65% 168% 2 YG Model 62% 160% 3 PE Model 56% 141% 4 CRISIL Bal F 36% 83% May 2004 – May 2006 (722 days) March 2009 – October 2009 (221 days) 100 120 140 160 180 200 220 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Rebasedto100 YG Model PE Model NIFTY CRISIL Bal F 100 130 160 190 220 250 280 310 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Rebasedto100 YG Model PE Model NIFTY CRISIL Bal F Nifty 50 CRISIL Bal F Yield Gap Model Price Earning Model This slide exhibits the performance figures during specified periods. The performance of the YG and PE models is based on select DSP BlackRock (DSPBR) Mutual Fund schemes. Schemes considered for equity allocation: (i) May 2004 till Oct 2009: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: (i) May 2004 - May 2007: DSPBR Bond Fund (ii) May 2007 till Oct 2009: DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. Data source: Internal. Nifty 50 CRISIL Bal F Yield Gap Model Price Earning Model Note: An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments.
  17. 17. Performance across market cycles: Bear Phases 17 November 2010 – December 2011 (410 days) January 2008 – March 2009 (430 days) 30 40 50 60 70 80 90 100 110 Jan-08 Feb-08 Apr-08 Jun-08 Aug-08 Sep-08 Nov-08 Jan-09 Mar-09 Rebasedto100 YG Model PE Model NIFTY CRISIL Bal F 70 80 90 100 110 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Oct-11 Dec-11 Rebasedto100 YG Model PE Model NIFTY CRISIL Bal F Rank CAGR Performance Absolute Performance 1 YG Model -14% -16% 2 PE Model -30% -34% 3 CRISIL Bal F -36% -41% 4 Nifty 50 -53% -59% Rank CAGR Performance Absolute Performance 1 YG Model 1% 1% 2 PE Model -9% -10% 3 CRISIL Bal F -14% -16% 4 Nifty 50 -24% -27% This slide exhibits the performance figures during specified periods. The performance of the YG and PE models is based on select DSP BlackRock (DSPBR) Mutual Fund schemes. Schemes considered for equity allocation: Jan 2008 till Dec 2011: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: Jan 2008 till Dec 2011: DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. Data source: Internal. Nifty 50 CRISIL Bal F Yield Gap Model Price Earning Model Nifty 50 CRISIL Bal F Yield Gap Model Price Earning Model Note: An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments.
  18. 18. Performance across market cycles: Range-bound Phases 18 October 2011 – August 2013 (691 days) October 2009 – September 2011 (714 days) This slide exhibits the performance figures during specified periods. The performance of the YG and PE models is based on select DSP BlackRock (DSPBR) Mutual Fund schemes. Schemes considered for equity allocation: Oct 2009 till Aug 2013: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: Oct 2009 till Aug 2013: DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. Data source: Internal. Nifty 50 CRISIL Bal F Yield Gap Model Price Earning Model Nifty 50 CRISIL Bal F Yield Gap Model Price Earning Model 85 95 105 115 125 Oct-09 Jan-10 May-10 Aug-10 Nov-10 Feb-11 Jun-11 Sep-11 Rebasedto100 YG Model PE Model NIFTY CRISIL Bal F 85 95 105 115 125 135 Oct-11 Feb-12 Jun-12 Nov-12 Mar-13 Aug-13 Rebasedto100 YG Model PE Model NIFTY CRISIL Bal F Rank CAGR Performance Absolute Performance 1 YG Model 7% 14% 2 PE Model 2% 3% 3 CRISIL Bal F 1% 2% 4 Nifty 50 -2% -4% Rank CAGR Performance Absolute Performance 1 YG Model 7% 14% 2 CRISIL Bal F 6% 12% 3 Nifty 50 5% 9% 4 PE Model 3% 7% Note: An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments.
  19. 19. Rolling Returns 19 Median CAGR rolling returns 5 Years 3 Years 2 Years 1 Year YG Model 0% 0% 0% 5% PE Model 0% 0% 4% 11% Nifty 50 2% 5% 21% 22% CRISIL Balanced Fund Aggressive Index 0% 0% 7% 16% Instances (in percentage) of negative performance This slide shows the median rolling returns and history of negative rolling returns generated by investments made for the above mentioned holding periods, during the period from Oct 2003 to Mar 2017. The performance of the YG and PE models is based on select DSP BlackRock (DSPBR) Mutual Fund schemes. Schemes considered for equity allocation from Oct 2004 till Mar 2017: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: (i) Oct 2004 - May 2007: DSPBR Bond Fund (ii) May 2007 till Mar 2017 : DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. Data source: Internal. Note: An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. YG Model has been more consistent, and has shown evidence of lesser likelihood of negative performance 16% 15% 10% 12% 11% 13% 12% 12% 10% 11% 12% 14% 10% 11% 11% 12% 5 Years Return 3 Years Return 2 Years Return 1 Years Return YG Model PE Model NIFTY 50 CRISIL Balanced Fund Aggressive Index
  20. 20. Drawdown 20 Maximum drawdown This slide shows the maximum negative performance (absolute returns) that occurred between any points in time over the above mentioned time periods ending Mar 2017. The performance of the YG and PE models is based on select DSP BlackRock Mutual Fund (DSPBR) schemes. Schemes considered for equity allocation: (i) Feb 2004 till Mar 2017: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: (i) Feb 2004 - May 2007: DSPBR Bond Fund (ii) May 2007 till Mar 2017: DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. Data source: Internal. Note: An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. YG Model has exhibited lower drawdown in various market cycles over the last 10 years -20% -7% -7% -7% -33% -11% -6% -4% -60% -23% -23% -16% -44% -13% -13% -7% -70% -60% -50% -40% -30% -20% -10% 0% Last 10 Years Last 5 Years Last 3 Years Last 1 Year YG Model PE Model NIFTY 50 CRISIL Balanced Fund Aggressive Index
  21. 21. 0 50000 100000 150000 200000 250000 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Yield Gap (YG) Model Price Earnings (PE) Model NIFTY 50 CRISIL Balanced Fund Aggressive Index SIP performance over the long term 21 SIP investments growth in rupee terms (total investment over the period: Rs 1.20 lakh) Nifty 50: Rs 1.97 lakh CRISIL Bal F: Rs 1.98 lakh YG Model: Rs 2.06 lakh PE Model: Rs 2.13 lakh The above charts assume monthly SIP investments of Rs. 1000 on the last day of each month. The performance of the YG and PE models is based on select DSP BlackRock Mutual Fund (DSPBR) schemes. Schemes considered for equity allocation from Jun 2006 till Mar 2017: DSPBR Equity Fund and DSPBR Top 100 Equity Fund (in equal proportion); for fixed income allocation: (i) Jun 2006 - May 2007: DSPBR Bond Fund (ii) May 2007 till Mar 2017: DSPBR Strategic Bond Fund and DSPBR Short Term Bond Fund (in equal proportion). These figures, however, do not in any manner indicate the future returns/performance of DSP BlackRock Dynamic Asset Allocation Fund. An exit load of 1% has been considered whenever the asset allocation changes from equity to debt or debt to equity. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. Data source: Internal. 21 Mar-17
  22. 22. Summary: Why should an investor consider this Scheme? 22  Solution focused  Active approach  Simple & effective  A fund for every investor  In-built risk management Seeks to offer a bundled investment proposition Achieves tactical asset allocation based on the relative attractiveness of equity and debt markets Automatic rebalancing of portfolios to not only aim for better returns but also to limit downside for investors during market downturns Uses the yield gap metric to assess market valuations Suitable for investors looking at long-term wealth creation, irrespective of market conditions 1 2 3 4 5
  23. 23. Scheme Features 23 #DSP BlackRock Dynamic Asset Allocation Fund also has a provision to invest in three other equity schemes (DSP BlackRock Focus 25 Fund, DSP BlackRock Opportunities Fund and DSP BlackRock India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) and three other fixed income schemes (DSP BlackRock Money Manager Fund, DSP BlackRock Banking & PSU Debt Fund and DSP BlackRock Income Opportunities Fund) of DSP BlackRock Mutual Fund. Please read the SID carefully for more details on these schemes and also for more details on risk factors before investment. Features Name of the Scheme DSP BlackRock Dynamic Asset Allocation Fund Type of Scheme Open-ended Fund of Funds Scheme Underlying Equity Schemes# DSP BlackRock Equity Fund DSP BlackRock Top 100 Equity Fund Underlying Fixed Income Schemes# DSP BlackRock Strategic Bond Fund DSP BlackRock Short Term Fund Fund Managers Mayur Patel, Kedar Karnik and Laukik Bagwe Benchmark CRISIL Balanced Fund Aggressive Index Entry load Not Applicable Exit load Holding period < 12 months: 1%* Holding period >= 12 months: Nil *If units are redeemed or switched out are up to 10% of the units (the limit) purchased or switched : Nil Plans Regular Plan Direct Plan Options Growth (default option) Dividend Payout; Dividend Reinvest
  24. 24. Comparative Performance of all schemes managed by Mayur Patel, Kedar Karnik and Laukik Bagwe 24
  25. 25. Comparative Performance of all schemes managed by Mayur Patel, Kedar Karnik and Laukik Bagwe 25
  26. 26. Comparative Performance of all schemes managed by Mayur Patel, Kedar Karnik and Laukik Bagwe 26
  27. 27. Product Labeling Details Fund Product Suitability Riskometer DSP BlackRock Dynamic Asset Allocation Fund This Open Ended Fund of Funds Scheme is suitable for investors who are seeking* Long-term capital growth; Investments in units of one or more equity mutual funds and debt mutual funds of DSP BlackRock Mutual Fund DSP BlackRock Top 100 Equity Fund This Open Ended Growth Scheme is suitable for investors who are seeking* Long-term capital growth Investment in equity and equity-related securities of large cap companies (top 100 companies by market capitalization) DSP BlackRock Focus 25 Fund This Open Ended Growth Scheme is suitable for investors who are seeking* Long-term capital growth with exposure limited to a maximum of 25 stocks from an investment universe of top 200 companies by market capitalization Investment in equity and equity-related securities to form a concentrated portfolio DSP BlackRock MIP# Fund This Open Ended Income Scheme is suitable for investors who are seeking* Income and capital growth over a medium-term investment horizon Investment primarily in money market and debt securities, with balance exposure in equity/equity- related securities 27 *Investors should consult their financial/tax advisors if in doubt about whether the product is suitable for them | # Monthly Income is not assured and is subject to availability of distributable surplus
  28. 28. Product Labeling Details Fund Product Suitability Riskometer DSP BlackRock Equity Fund This Open Ended Growth Scheme is suitable for investors who are seeking* Long-term capital growth Investment in equity and equity-related securities to form a diversified portfolio DSP BlackRock Bond Fund This Open Ended Income Scheme is suitable for investors who are seeking* Income over a long investment horizon Investment in money market and debt securities DSP BlackRock Strategic Bond Fund This Open Ended Income Scheme is suitable for investors who are seeking* Income over a medium to long term investment horizon Investment in actively managed portfolio of money market and debt securities DSP BlackRock Income Opportunities Fund This Open Ended Income Scheme is suitable for investors who are seeking* Income over a medium-term investment horizon Investment in money market and debt securities 28 *Investors should consult their financial/tax advisors if in doubt about whether the product is suitable for them
  29. 29. Product Labeling Details Fund Product Suitability Riskometer DSP BlackRock Banking & PSU Debt Fund This Open Ended Income Scheme is suitable for investors who are seeking* Income over a short-term investment horizon Investment in money market and debt securities issued by banks and public sector entities/ undertakings DSP BlackRock Treasury Bill Fund This Open Ended Money Market Mutual Fund Scheme in Income category is suitable for investors who are seeking* Income over a short-term investment horizon Investment in Treasury Bills & other Central government securities maturing within one year DSP BlackRock Global Allocation Fund This Open ended Fund of Funds Scheme is suitable for investors who are seeking* : • Long-term capital growth • Investment in units of overseas funds which invest in equity, debt and short term securities of issuers around the world DSP BlackRock US Flexible^ Equity Fund This Open-ended Fund of Funds Scheme is suitable for investors who are seeking*:  Long-term capital growth  Investment in units of overseas funds which invest primarily in equity and equity related securities of companies domiciled in, or exercising the predominant part of their economic activity in the USA ^The term “Flexible” in the name of the Scheme signifies that the Investment Manager of the Underlying Fund can invest either in growth or value investment characteristic securities placing an emphasis as the market outlook warrants 29 *Investors should consult their financial/tax advisors if in doubt about whether the product is suitable for them
  30. 30. Product labeling details Scheme Product Suitability Riskometer DSP BlackRock Liquidity Fund The Open ended liquid Scheme is suitable for investors who are seeking* Income over a short-term investment horizon Investment in money market and debt securities, with maturity not exceeding 91 days DSP BlackRock Money Manager Fund The Open ended income scheme is suitable for investors who are seeking* Income over a short-term investment horizon Investment in money market and debt securities DSP BlackRock Ultra Short Term Fund The Open ended income scheme is suitable for investors who are seeking* Income over a short-term investment horizon Investment in money market and debt securities DSP BlackRock Short Term Fund The Open ended income scheme is suitable for investors who are seeking* Income over a medium-term investment horizon Investment in money market and debt securities 30 *Investors should consult their financial/tax advisors if in doubt about whether the scheme is suitable for them.
  31. 31. Product labeling details Scheme Product Suitability Riskometer DSP BlackRock Opportunities Fund The Open ended growth scheme is suitable for investors who are seeking* Long-term capital growth Investment in equity and equity-related securities to form a diversified portfolio DSP BlackRock India T.I.G.E.R Fund (The infrastructure Growth and Economic Reforms Fund) The Open ended growth scheme is suitable for investors who are seeking* Long-term capital growth Investment in equity and equity related securities of corporate, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and /or from continuing investments in infrastructure, both by the public and private sector DSP BlackRock Equity Savings Fund The Open ended growth scheme is suitable for investors who are seeking* Long-term capital growth Investment in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with balance exposure in debt and money market instruments 31 *Investors should consult their financial /tax advisors if in doubt about whether the scheme is suitable for them.
  32. 32. 32 Disclaimer: DSP BlackRock Dynamic Asset Allocation Fund In this material DSP BlackRock Investment Managers Pvt. Ltd. (the AMC) has used information that is publicly available, including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors which is available at www.dspblackrock.com. Past performance may not sustain in future and should not be used as a basis for comparison with other investments. Neither the Fund nor any of its schemes are registered in any jurisdiction except with SEBI (in line with SEBI (Mutual Fund) Regulations, 1996). The distribution of this material in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of this material in such jurisdictions are required to inform themselves about, and to observe, any such restrictions. There is no guarantee of returns/income generation in the Scheme. Further, there is no assurance of any capital protection/capital guarantee to the investors in the Scheme. Benchmarked to the Nifty 500 Index, are not sponsored, endorsed, sold or promoted by India Index Services & products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise, marked to such index. © CRISIL Limited 2016. All Rights Reserved Each CRISIL Index (including, for the avoidance of doubt, its values and constituents) is the sole property of CRISIL Limited (CRISIL). No CRISIL Index may be copied, retransmitted or redistributed in any manner. While CRISIL uses reasonable care in computing the CRISIL Indices and bases its calculation on data that it considers reliable, CRISIL does not warrant that any CRISIL Index is error-free, complete, adequate or without faults. Anyone accessing and/or using any part of the CRISIL Indices does so subject to the condition that: (a) CRISIL is not responsible for any errors, omissions or faults with respect to any CRISIL Index or for the results obtained from the use of any CRISIL Index; (b) CRISIL does not accept any liability (and expressly excludes all liability) arising from or relating to their use of any part of CRISIL Indices. All figures and other data given in this document for the fund are as on 31st May, 2017 and for the yield gap model are as on 31st March, 2017 (unless otherwise specified) and the same may or may not be relevant in future and the same should not be considered as solicitation/ recommendation/guarantee of future investments by DSP BlackRock Investment Managers Pvt. Ltd. or its affiliates. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of DSP BlackRock Mutual Fund. For complete details on risk factors, event of suspension of subscriptions and more details, investors are requested to read the Scheme Information Document (SID) of the Scheme. For risk factors and product labeling details of the Underlying Schemes, investors are requested to read the respective SIDs of the Underlying Schemes. Mutual fund investments are subject to market risks, read all scheme related documents carefully. 32

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