DSP Flexi-cap Fund

DSP Flexi-Cap Fund. Who should invest?

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry. 

DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds.

DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management.

For over two decades DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & integrity

DSP Flexi Cap Fund 

– Investment objective

An open-ended growth scheme, seeking to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity-related securities of issuers domiciled in India.

– Investment process

DSP-flexi-cap-investment-fund

The DSP Flexi Cap Fund follows a growth style of investing which consists of growth stocks of large-, mid and small-cap companies.

The investment philosophy of the fund is to buy quality businesses, stay invested, and use corrections to average down. 

The portfolio construction involves investing across the market capitalization spectrum. The fund core portfolio is based on long-term themes, a core equity portfolio of 75% – 80%, and a tactical equity portfolio of 20% – 25% with a total number of stocks of 50-70. Framework to identify companies are business strength, management quality, and growth prospects.

– Portfolio composition 

The portfolio holds the major exposure in large-cap stocks at 61% and sectorally major exposure is to financial services that account for more than one-third of the portfolio.

The top 5 sectors hold nearly 73% of the portfolio.

DSP-flexi-cap-portfolio-composition
Note: Data as of 31st Oct 2022. 
Source: Value Research 

Top 5 holdings

Name Sector Weightage % 
HDFC Bank Financial 9.96 
ICICI Bank Financial 7.34 
Bajaj Finance Limited Financial 5.96 
Infosys Technology 4.50 
Avenue Supermarts Limited Services 4.07 
Note: Data as of 31st Oct 2022. 
Source: Value Research 

Performance over 25 years 

If you would have invested 10 lakhs at the inception of the DSP Flexi Cap Fund, it would be now valued at Rs 8.12 crore. 

DSP-flexi-cap-performance-over-25-years
Note: Performance of the fund since launch; Inception Date – Apr 29, 1997, till Nov 14, 2022. 
Source: Moneycontrol 

The fund has given consistent returns and has outperformed the benchmark over the period of 25 years by generating a CAGR (Compounded Annual Growth Rate) of 18.77%. 

Fund manager 

Atul Bhole: Prior to joining DSP Mutual Fund, he worked with Tata Mutual Fund, JP Morgan Services Pvt. Ltd., and SBI Treasury. 

Who should invest in the DSP Flexi Cap Fund? 

Investors looking to 

  • Hold multi-cap companies i.e. large/mid/small cap under one umbrella 
  • Invest in market leaders of different size 

Why invest in the DSP Flexi Cap Fund? 

  • One-stop option for equity investments, investors no need to decide on large/mid/small cap allocation 
  • Fund owns high-quality companies with good prospects, which are good for long-term 

Horizon 

  • One should look at investing for a minimum of 5 years or more 
  • A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility 
Conclusion 

The DSP Flexi Cap Fund has a well-diversified portfolio of 52 stocks that have delivered consistent returns over 25 years with a proven track record with an 18.77% CAGR consistently.

The fund is suitable for investors who want to have a core equity portfolio and tactical equity portfolio under one fund.

Disclaimer

This is not recommendation advice. All information in this blog is for educational purposes only.

Add comment

Your email address will not be published. Required fields are marked *