DSP equity & bond fund. Who should invest?

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years.

DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries.

Let us talk about the flagship product – DSP Equity & Bond Fund.

DSP Equity & Bond Fund 

– Investment objective

The primary investment objective of the Scheme is to seek to generate long-term capital appreciation and current income from a portfolio constituted of equity and equity-related securities as well as fixed-income securities (debt and money market securities). 

– Investment process  

The DSP Equity & Bond Fund invests in a good mix of equity & debt instruments, trying to deliver equity-like returns with a slightly lower risk profile.

The equity portion is well diversified across multiple sectors & different-sized companies while the debt portion is mostly in highly rated debt instruments with shorter-term maturity profiles 

– Portfolio composition 

The portfolio has an equity exposure of 65%+ while debt exposure is kept at less than 35%. The major equity exposure is around 62% in a large cap.

The top 5 sectors hold nearly 43% of the portfolio, with major exposure to the banking and finance sector.

Top 5 holdings

Name	Sector	Weightage %
HDFC Bank Ltd.	Bank	7.69
ICICI Bank Ltd.	Bank	5.52
Bajaj Finance Ltd.	Financial Services	4.34
Infosys Ltd.	Information Technology	3.47
Avenue Supermarts Ltd.	Retail	3.08

Performance over 23 years 

If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs. 2.2 lakhs. This fund has outperformed the benchmark in all time horizons.

The fund has given consistent returns and has outperformed the benchmark over the period of more than 23 years by generating a CAGR (Compounded Annual Growth Rate) of 14.36% 

Fund managers 

• Atul Bhole – Mr. Atul is the Vice President of Investments of DSP Blackrock Investment Managers. He has been managing the fund as a Co-Manager since 2016. 
• Dhaval Gada – Mr. Dhaval has been managing the fund since September 2022. He is also the Vice President of Investments of DSP Mutual Fund. 
• Vikram Chopra – Mr. Vikram comes with an industry experience of 14 years. He has been actively managing this fund since July 2016. 

Who should invest in DSP Equity & Bond Fund? 

Investors 

• Looking to invest in the equity markets but don’t know how to begin. 
• Have the patience & mental resilience to remain invested for a decade or more. 

Why invest in DSP Equity & Bond Fund? 

• This fund is the simplest way to get the benefit of asset allocation with a balance of growth & stability orientation. 

• Potential capital preservation during falling markets due to debt allocation. 

Horizon 

• One should look at investing for a minimum of 5 years or more. 
• Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. 

Conclusion 

This DSP Equity & Bond Fund offers the potential to grow your wealth over the long term and potential capital preservation during falling markets due to debt allocation.

This fund offers debt allocation to control losses during major market collections.