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.
DSP Regular Savings Fund
Investment objective
The primary investment objective of the scheme is to seek to generate income, consistent with prudent risk, from a portfolio substantially constituted of quality debt securities.
Investment Process
- For equities, the fund uses a bottom-up approach with a large-cap bias focusing on sectors and industries with double-digit growth.
- For debt securities, the fund focuses on short-tenure corporate bonds, with a modified duration between 2.5 to 3.5 years and rated AA or above, to minimize both interest rate and credit risk.
Portfolio Composition
The portfolio had a significant allocation to debt and a relatively lower equity allocation, where 75.08% of the funds were invested in debt securities, and 24.92% were in the form of equity investments.
Source: DSP MF
DSP World Mining Fund
Top 5 Equity Holdings
| Name | Weightage % |
| HDFC | 3.83 |
| ICICI Bank | 2.98 |
| Axis Bank | 1.93 |
| ITC | 1.16 |
| Cipla | 1.11 |
Source: DSP MF
Performance
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs 22,304.
Source: DSP MF
The fund was launched on 1st Jan. 2013, and it has generated a CAGR of 8.08% since inception, which is a good return in the conservative hybrid category as the investors’ risk appetite is low.
Fund Manager at DSP Regular Savings Fund
- Abhishek Singh has been managing this fund since May 2021. Abhishek has a total work experience of 14 years. He joined DSP Mutual Fund in September 2018 as Assistant Vice President of the equity team. His prior experience includes working in Motilal Oswal, Idfc Securities, BNP Paribas, B&K Securities, and Edelweiss Financial Services.
- He has an MBA in finance and holds a Bachelor’s in Electronics Engineering.
- Vikram Chopra has been managing this fund since July 2016. Vikram joined DSP Mutual Funds from L&T Investment Management and brings over 14 years of investment experience with him. He has also worked with Fidelity, IDBI Bank, and Axis Bank Ltd.
- Jay Kothari has been managing this fund since December 2020. 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. Before joining DSPIM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University and an MBA in Finance from Mumbai University.
Who should invest in DSP Small Cap Fund?
Consider this fund if you
- Are looking to generate a steady potential income rather than chasing high returns.
- Want the smoother investment journey associated with debt investing but with a possibly higher return than debt?
- Are conservative and don’t like to take too much risk.
Why invest in this Fund?
- Offers the potential to earn a steady income from a primarily debt-oriented portfolio with a little ‘boost’ of equity.
- Earn potentially higher returns than investing in pure debt funds.
- Potential capital preservation during falling markets due to the more significant debt allocation.
- Suitable for conservative investors.
- Investors can use it for doing STP into Equity Funds.
Time Horizon
- One should look at investing for at least five years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The DSP Regular Savings Fund is a good option for conservative investors not chasing high returns. It provides a better option over traditional debt investing with higher returns due to little exposure to equities.
Investors can consider this fund for parking funds and then do STP to equity fund to average the cost of equity investments
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
