DSP Merrill Lynch Fund Managers launches DSP Merrill Lynch Micro Cap Fund
Mumbai, May 4, 2007: DSP Merrill Lynch Fund Managers has launched DSP Merrill Lynch Micro Cap Fund, a three year close ended equity growth scheme. The New Fund Offer (NFO) period will close on May 25, 2007.
Under normal circumstances taking meaningful exposure down the market capitalisation chain can tend to be difficult. Companies in this segment have witnessed increasing access to capital from private equity funds as well as banks. There has also been an increase in investor appetite for stocks in this segment especially from FIIs and institutional investors. We see an opportunity for a scheme which can offer investors a diversified exposure to the “Private Equity” style of investing.
Micro cap stocks comprise of a large pool of varied, uncorrelated stocks which are relatively unknown and under-researched. Building a portfolio of such companies requires proven expertise in equity fund management and stock-picking. DSP Merrill Lynch Fund Managers have a consistent performance track record of over ten years in equity fund management, and have shown a strong growth of their equity assets. In a little over four years, equity assets under management and non-binding advisory services have increased from around Rs.170 crore in December 2002 to over Rs.16,200 crore in March 2007 (including domestic, PMS and offshore advisory mandates).
Speaking on the occasion of the launch, Mr. S. Naganath, President and Chief Investment Officer, said, India is currently one of the fastest growing economies in the world and has the potential to sustain 8% - 10% GDP growth over the medium to long term. This has contributed to a vibrant entrepreneurial spirit which is visible across various sectors of the economy. Micro Cap stocks offer an opportunity for investors to participate in a variety of entrepreneurial ventures that hold the potential for high growth over medium term to long term.