mutual funds: DSP Equity Opportunities mutual fund review: Needs long investing horizon


ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW THE FUND HAS PERFORMED

WHERE THE FUND INVESTS

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BASIC FACTS

  • Date of launch: 16 MAY 2000
  • category: equity
  • type: large & midcap
  • AUM (As on 31 March 2022: Rs 6,514 crore
  • Benchmark: Nifty large midcap 250 total return index

WHAT IT COSTS

  • NAV as on 19 APRIL 2022
  • Growth option: Rs 342.08
  • IDCW: Rs 27.98
  • Minimum investment: Rs 500
  • Minimum sip amount: Rs 500
  • Expense ratio( 28 Feb 2022) (%): 1.91
  • Exit load: 1% for redemption within 364 day

FUND MANAGER

  • Rohit Singhania
  • TENURE: 6 YEARS, 9 MONTHS

Top 5 sectors in portfolio (%)

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Top 5 stocks in portfolio (%)

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Recent portfolio changes

  • New Entrants: APL Apollo Tubes, Jubilant FoodWorks, Lupin, Polycab India, Hindalco Industries, Coforge, Tata Chemical
  • Complete Exits: Bajaj Finserv, Sterlite Technologies, Tata Steel, Apollo Tyres
  • Increasing allocation: Alkem Labs, Axis Bank, Dr. Reddy’s Labs, Godrej Consumer, HDFC Bank, Hindalco Inds, ICICI Bank, Infosys, Jubilant FoodWorks, Lupin, M&Ma, SBI Life Insurance.

How risky is it?

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Source: Value Research


Should you buy?

This fund was earlier run with a fluid approach with a distinct large-cap tilt, before its repositioning as a large & mid cap fund. While it had to hike its midcap presence substantially in the transition, it continues to retain a large-cap bias. The fund manager does not adhere to any particular investing style, choosing a fluid stance taking positions across 3-4 ideas within select sectors or baskets where opportunities arise. While this dynamism has helped the fund build a strong track record, it has gone through a rough patch in the last two years. Sharp underperformance amid a rising market has hurt its return profile. These bouts of underperformance are expected given its unique approach, that necessitates a longer investing time horizon.



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