DSP Quant Fund

DSP Quant 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 Quant Fund.

About DSP Quant Fund

– Investment objective

The investment objective of the scheme is to deliver superior returns as compared to the underlying benchmark over the medium to long term through investing in equity and equity-related securities. 

– Investment process  

The portfolio of stocks will be selected, weighed, and re-balanced using stock screeners, factor-based scoring, and an optimization formula that aims to enhance portfolio exposures to factors representing ‘good investing principles’ such as growth, value, and quality within risk constraints. 

– Portfolio composition 

The equity exposure is majorly in large-cap stocks at 83% and sectoral major exposure is to banks and financial services. The top 5 sectors hold nearly 53% of the portfolio.

DSP-quant-fund-portfolio-composition
Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. 
Source: dspim.com 

Top 5 holdings

Name Sector Weightage % 
ICICI Bank Ltd. Bank 5.16 
Housing Development Finance Corporation Ltd. Financial Services 4.36 
HDFC Bank Ltd. Bank 4.28 
Bajaj Finance Ltd. Financial Services 4.07 
Bajaj Finserv Ltd. Financial Services 4.06 
Note: Data as of 30th Sep 2022. 
Source: ICICI Pru AMC 

Performance over 3 years

If you would have invested 10,000 at the inception of the DSP Quant Fund, it would be now valued at Rs. 15,891. This fund has outperformed the benchmark in all time horizons.

DSP-quant-fund-performance-over-3-years
Note: Performance of the fund since launch; Inception Date – Jun 10, 2019. 
Source: dspim.com 

The DSP Quant Fund has given consistent returns and has outperformed the benchmark over the period of 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.02%.

Fund managers 

  • Anil Ghelani – Total work experience of 22 years. Managing the scheme since June 2019.  
  • Diipesh Shah – Total work experience of 20 years. Managing the scheme since November 2020.  
  • Prateek Nigudkar – Total work experience of 9 years. Managing this fund since May 2022.  
  • Aparna Karnik – Total work experience of 17 years. Managing this fund since May 2022.  

Who should invest in DSP Quant Fund? 

Investors looking for 

  • Long-term wealth creation solution. 
  • Looking for a portfolio with fundamentally strong sectors and stocks that do not experience very high volatility. 

Why invest in DSP Quant Fund? 

  • Investment in the active portfolio of stocks screened, selected, weighed, and rebalanced on the basis of a predefined fundamental factor mode. 
  • It has no sector or stock concentration. 

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 

The fund has a strategy of quality, value, and growth while selecting the stocks for its portfolio. This fund uses a multi-factor approach to assess companies in a holistic manner.

Disclaimer

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

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