A true multi-cap fund, DSPML Equity is one of the most preferred funds in its category today. Find out why both aggressive and conservative investors should give DSPML a look in
This fund has been putting its best foot forward lately. From a large-cap focus, it shifted to stocks of smaller companies in 2003 to coincide with the mid-cap rally. Now it displays the characteristics of a true multi-cap fund.
In the recent past, it has also developed the ability of holding up well in the face of the bear. One thing that sets the fund apart is its high sharpe ratio which is suggestive of a favourable risk-reward ratio. The sixth-highest in the category, it indicates that for the amount of risk taken, the fund is able to deliver much higher returns than the average diversified equity fund.
The current year-to-date return of 38.20 percent is ahead of the category average of 33.40 per cent. Neither has it been a slouch over the long term. In the last five years, it has under-performed the category in only three quarters.
The fund believes in a high degree of diversification. The number of stocks in the portfolio hovers around 70, with the top holding rarely accounting for more than 5.50 per cent. Half of its holdings account for less than one per cent of the portfolio. It is difficult not to like this fund.
With no market-capitalisation or sector bias, this diversified equity offering goes about generating returns in a very consistent fashion. Its versatility and consistency make it a suitable core holding for conservative as well as aggressive investors. Little wonder that its asset size has grown to cross Rs 1,000 crore.
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