8,660.2518.8
Stock Analysis, IPO, Mutual Funds, Bonds & More

DSP Equity Fund: fund review

In times when estimates and assumptions are being questioned or proven wrong consistently due to unforeseen factors, it makes sense to stick with equity schemes that have been through long market cycles. Schemes which have been in existence for more than 15 years is a good criterion.

, ET Bureau|
Last Updated: Mar 24, 2020, 09.48 AM IST
0Comments
iStock
17
Coronavirus
In times when estimates and assumptions are being questioned or proven wrong consistently due to unforeseen factors, it makes sense to stick with equity schemes that have been through long market cycles. Schemes which have been in existence for more than 15 years is a good criterion. Secondly and more importantly, such schemes must have delivered consistently better returns than their peers in the category.

One such scheme filtered using this criteria is DSP Equity Fund, which is one of the best performing schemes in the multi-cap category. The scheme has higher allocation to blue-chip and large-cap companies (69%), followed by 23% in mid-cap companies. The remaining is invested in small-cap companies.

Given the present market situation, this allocation is reasonably good to arrest the fall in the returns.

In the past seven-year and 10-year periods, the scheme has given 11% and 8.8% returns, respectively as compared to its peers who have delivered an average 9.6% and 7.8% returns, respectively over the same periods.

ET Bureau
dsp

Expert Take
Vishal Dhawan,
CFP, Plan Ahead Wealth Advisors


The scheme’s multi-cap structure works in the present market conditions considering the looming uncertainty of the negative impact of the Covid-19 on companies. A portion of the scheme’s portfolio is allocated to tactical opportunities like special situations, which can come in handy in boosting its returns.


Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service