DSP India T.I.G.E.R fund

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 India T.I.G.E.R Fund

About DSP India T.I.G.E.R Fund 

Investment objective

The primary investment objective of DSP India T.I.G.E.R Fund is to seek to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity-related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing investments in infrastructure, both by the public and private sector. 

Investment process  

The DSP India T.I.G.E.R Fund seeks to reduce concentration risk by owning a higher number of good quality stocks and following an approach to own a basket of stocks in industrial products, building materials, and construction.

It identifies and invests in those stocks which have visibility for the next 3-5 years and have lower cyclicality, and a higher ability to grow even in low industrial growth.  

Portfolio composition 

The equity exposure is similar throughout the market caps, the highest being in the small cap at 37%, followed by the large-cap at 32%.

The sectoral major exposure is to Construction and Industrial Products. The top 5 sectors hold nearly 60% of the portfolio.

Top 5 holdings for DSP India T.I.G.E.R Fund 

Name	Sector	Weightage %
Larsen & Toubro Ltd.	Conglomerate	4.27
Siemens Ltd.	Conglomerate	3.60
Kalpataru Power Transmission Ltd.	Power Transmission	3.25
Rhi Magnesita India Limited	Refractory Manufacturers	3.16
Power Grid Corporation of India Limited	Power Transmission

Performance over 18 years for DSP India T.I.G.E.R Fund 

If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs. 1.63 lakhs. This fund has outperformed the benchmark in all time horizons.

The DSP India T.I.G.E.R Fund has given consistent returns and has outperformed the benchmark over the period of 18 years by generating a CAGR (Compounded Annual Growth Rate) of 16.23%. 

Fund managers 

• Rohit Singhania – He joined DSP Investment Managers in September 2005, as Portfolio Analyst for the firm’s Portfolio Management Services (PMS) division.  
• Charanjit Singh – Total work experience of 16 years. He joined DSP Investment Managers in September 2018 as Assistant Vice President of the Equity Team.  
• Jay Kothari – Vice President & Product Strategist -Jay has been with DSP Investment Managers since May 2005, and has been with the Investment function since January 2011. Jay joined the firm in May 2005.  

Who should invest in DSP India T.I.G.E.R Fund? 

• Are an experienced investor with a well-set core portfolio & know what you’re doing. 
• Investors who have the patience and sectoral understanding to ‘extract value’ from changing sector cycles. 

Why invest in DSP India T.I.G.E.R Fund? 

• This fund offers the potential to grow your wealth & ‘earn big’ returns if this theme does well (a high-risk, high-return strategy). 
• Can help you beat the impact of rising prices over the long term. 

Time Horizon 

• One should look at investing for a minimum of 10 years or more. 
• Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. 

Conclusion 

DSP India T.I.G.E.R Fund considers businesses in this space with higher growth potential available at reasonable valuations, as compared with peers or with its own valuation history.

It is one of the oldest funds of DSP with 17+ years of track record. It is a good thematic fund that is directly related to the development of an economy due to infrastructural development.