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 Government Securities Fund.
DSP Government Securities Fund
Investment objective
The primary objective of the Scheme is to generate income through investment in Central Government Securities of various maturities.
Investment process
DSP Government Securities Fund invests 100% in sovereign debt (the highest quality debt securities available in the Indian market, considered to be safe havens even during periods of economic turmoil as they carry little risk of default.
Portfolio composition
The portfolio’s major exposure of more than 78% in Sovereign bonds which are supposed to be the safest debt instruments. The rest is maintained in cash.
Top 5 Holdings in DSP Government Securities Fund
| Name | Weightage % |
| 7.38% GOI 2027 | 48.52 |
| TREPS / Reverse Repo Investments / Corporate Debt Repo | 27.30 |
| 7.42% GOI FRB 2033 | 11.01 |
| 364 DAYS T-BILL 2023 | 6.01 |
| Cash & cash equivalents | 1.15 |
Source: dspim.com
Performance over 23 years
If you had invested 10,000 at the inception of the DSP Government Securities Fund, it would be now valued at Rs. 78,289. This fund has outperformed the benchmark in all time horizons.
Source: Morningstar
The DSP Government Securities 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 9.25%
Fund managers
- Vikram Chopra – Total work experience of 14 years. He joined DSP Investment Managers from L&T Investment Management. He has also previously worked with Fidelity, IDBI Bank, and Axis Bank Ltd.
- Laukik Bagwe – Total work experience of 11 years. He joined the firm in November 2007 as a Fixed Income Dealer.
Who should invest in the DSP Government Securities Fund?
Investors
- Who prefer the stability of the debt market but are okay to expose themselves to interest rate risk.
- Who wants to invest in debt funds but understands that the returns are stable and not as high as equity funds?
Why invest in the DSP Government Securities Fund?
- This is a quality debt fund since the entire portfolio is made of government-backed securities.
- Earn potentially better returns than bank FDs.
Time Horizon
- One should look at investing and holding the investment for more than 3 years.
- Investment through SIP (Systematic Investment Plan) or Lumpsum should both be okay as the NAV of the fund does not fluctuate much.
Conclusion
This scheme offers stabilized returns with lower risk and volatility. Best suitable for people with either a short investment horizon or with low-risk appetite.
This scheme has generated returns that have beaten inflation and have performed much better than Fixed Deposits.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
