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.
About DSP Focus Fund
Investment objective
The portfolio will consist of multi-cap companies by market capitalization. The Scheme will hold equity and equity-related securities including equity derivatives, of up to 30 companies.
The Scheme may also invest in debt and money market securities, for defensive considerations and/or for managing liquidity requirements.
Investment process
The fund follows a growth style of investing which consists of growth stocks of large and mid-cap companies. The investment philosophy of the fund is to buy quality businesses from every sector to provide diversification.
The portfolio construction involves investing majorly in large & mid-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio. The fund uses different valuation models to identify the stocks from every sector.
Portfolio composition
The portfolio holds the major exposure in large-cap stocks at 59% and sectorally major exposure is to financial services that account for almost 23% of the portfolio. The top 5 sectors hold nearly 65% of the portfolio.
Source: Value Research
Top 5 holdings
| Name | Sector | Weightage % |
| ICICI Bank | Financial | 10.53 |
| Infosys | Technology | 6.40 |
| Cipla | Healthcare | 5.56 |
| Bajaj Finance | Financial | 5.51 |
| Eicher Motors | Automobile | 4.87 |
Source: Value Research
Performance over 22 years
If you would have invested 10 lakhs at the inception of the fund, it would be now valued at Rs 34.18 lakhs.
Source: Moneycontrol
The fund has given consistent returns and has outperformed the benchmark over the period of 12 years generating a CAGR (Compounded Annual Growth Rate) of 10.32%.
Fund Manager
Vinit Sambre
Prior to joining DSP Mutual Fund, he has associated with DSP Merill Lynch Ltd.(Nov’05 to Jun’07, IL & FS Investsmart Ltd. (Dec’02 to Oct 05), Unit Trust of India Investment Advisory Services Ltd. (Jun’00 to Dec’02), Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. (Mar’99 to May 00) and Credit Rating Information Service of India Ltd. (Apr’98 to Feb’99).
Who should invest?
Investors looking to
- Hold a focused portfolio of multi-cap companies across sectors
- Have the patience & mental resilience to remain invested for a decade or more
Why invest?
- To beat the impact of rising prices over the long-term
- Offers the potential to grow your wealth by investing in a relatively concentrated portfolio of quality companies with strong valuations
Horizon
- One should look at investing for a minimum of 5 – 7 years or more
- A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility
Conclusion
The fund has invested in almost every sector to provide sectoral diversification to the portfolio and the fund has delivered consistent returns over 12 years with a proven track record with a 10.32% CAGR consistently.
The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
