DSP Merrill Lynch Fund launches micro cap fund

Chennai, May 10: DSP Merrill Lynch Fund Mangers today launched the DSP Merrill Lynch Micro Cap Fund, a three-year close ended equality growth scheme.

Talking to newspersons here, company Senior Vice-President and Head of Equity Soumeendra Nath Lahiri said, "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 and long term." The scheme, which aims to generate long term capital appreciation, froms a portfolio that was substantialy constituted of equity and equity related securities, that were not part of the top 300 companies by market capitalisation.

"Under normal circumstances taking meaningful exposure down the market capitalisation chain can tend to be difficult", he said adding "companies in this segment have witnessed increasing access to capital from private equity funds as well as banks".

He said "we see an opportunity for a scheme, which can offer investors a diversified exposure to the 'Private Equity' style of investing".

"Micro cap stock comprise a large pool of varied, uncorrelated stocks, which are relatively unknown and under-researched", he said adding "building portfolio companies requires proven expertise in equity fund management and stock-picking".

The terms for the scheme including ten rupees per unit with a minimum investment of Rs 10,000 and maximum of five crore.

UNI