DSP Focus 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 Focus Fund. 

About DSP Focus Fund 

Investment objective

The primary investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities including equity derivatives.

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  

DSP Focus Fund invests in a focused portfolio of up to 30 stocks of large, mid, or small-sized companies. Its portfolio construction is based on macro factors, with a focus on companies with higher growth prospects and attractive valuations. 

Portfolio composition 

The portfolio’s major exposure of more than 59% in large-cap followed by 10% in mid-cap. The top 5 sectors hold nearly 57% of the portfolio, with major exposure to the IT-Software and Finance.

Top 5 holdings for DSP Focus Fund 

Name	Sector	Weightage %
ICICI Bank Ltd.	Bank	9.87
Bajaj Finance Ltd.	Finance	7.77
Infosys Ltd.	Information Technology	6.22
Cipla Ltd.	Pharmaceuticals	5.52
Eicher Motors Ltd.	Automotive	4.75

Performance over 12 years 

If you would have invested 10,000 at the inception of fund, it would be now valued at Rs. 31,775. This fund has outperformed the benchmark in all time horizons.

The fund has given consistent returns and has outperformed the benchmark over the period of more than 12 years with generating a CAGR (Compounded Annual Growth Rate) of 12.25% 

Fund managers 

• Vinit Sambre – He is the Head of Equities at DSP Investment Managers (DSPIM). Vinit joined DSPIM in July 2007, as Portfolio Analyst for the firm’s Portfolio Management Services (PMS) division. 
• 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 as a member of the Sales team (Banking) in May 2005. 

Who should invest in DSP Focus Fund? 

Investors 

• Who accept that equity investing means exposure to risk and have the patience & mental resilience to remain invested for a decade or more. 
• Who value ‘concentration’ and can digest higher risk. 

Why to invest in DSP Focus Fund? 

• Offers the potential to grow your wealth by investing in a relatively concentrated portfolio of quality companies with strong growth prospects available at good valuations. 
• Can help you beat the impact of rising prices over the long-term. 

Time horizon 

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

Conclusion 

DSP Focus Fund offers a focused or rather a concentrated portfolio across large, mid and small cap companies. With focus, the risk is always higher.

However, there is more research as the number of funds are lower compared to other categories of mutual funds, therefore, only stocks that are fundamentally strong and have a strong business are invested in.

This fund may experience high short-term fluctuations; hence it is good for long-term investment purpose.