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    DSP Equity Fund: fund review

    Synopsis

    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.

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    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.

    DSP Equity Fund-Growth ★★★★
    Things You should consider
    • Annualized Return
      for 3 year: 7.85%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.9 Years
    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.

    dspET Bureau

    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.


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