DSP Merrill Lynch launches new scheme

Bangalore, May 9 (UNI) Bringing Microcap stocks to limelight, DSP Merrill Lynch has launched a new three year close ended equity growth scheme investing on potential high growth companies whose annual net profits range between Rs 80 Crore to Rs 100 crore.

DSP Merrill Lynch Senior Vice President and Head of Equity Soumendra Nath Lahiri told newsmen here today that the Fund, 'DSP Merrill Lunch Micro Cap Fund' aimed to tap around Rs 500 crore with the closing date being May 25. The proceeds would be invested in around 45 micro cap companies with holdings in each of the company limited to around 4.5 per cent of the total equity.

He said Micro Cap stocks offered an opportunity for investors to participate in a variety of entrepreneurial ventures that held the potential for high growth over medium term to long term.

He said Micro Cap stock comprise of a large pool of varied, uncorrelated stocks which were relatively unknown or under researched. Building a portfolio of such companies required proven expertise in equity fund management and stock picking.

UNI