The Hindu Business Line : DSPML Opportunities Fund: Invest

The fund is a better option than other theme-based funds as it can switch between themes and opt for a combination, based on the market trends. Unlike HSBC Opportunities and Kotak Opportunities, both of which are flexi-cap funds, DSPML Opportunities primarily invests in large-cap stocks.

Its exposure to stocks with a market capitalisation of less than Rs 5,000 crore was restricted to 20 per cent of its assets in the past year.

Suitability: Given that it can take focussed exposures, the fund is better suited to investors with a high-risk appetite. However, in practice the fund has been managed much like a diversified fund with well-spread-out sector exposures.

In the past year the exposure to a single sector has not crossed 18 per cent. However, the good track record across market cycles is a confidence-inducing factor. The fund generated an annualised return of 38 per cent and 45 per cent for the past three and five years respectively. Those who preferred the SIP route since its inception would have reaped a 41.4 per cent return, outpacing the benchmark Nifty by 14 percentage points for the same period.

Performance: DSPML Opportunities Fund's NAV has grown by 7.5 per cent for the past year and under-performed its benchmark by 5 percentage points. Non-index stocks and mid-cap stocks that trailed the index last year could have weighed on performance.

However, DSP Opportunities is one among the several diversified funds that failed to beat the market over this period. The fund was reasonably successful at containing downside risk during the 2006 correction; when the Nifty shed close to 15 per cent in May-June, DSPML Opportunities contained loss at below 18 per cent.

Portfolio Overview: The fund has a well-diversified portfolio for the given asset size of Rs 1,408 crore and it consists of 57 stocks.

DSPML Opportunities continues to be bullish on software, capital goods and petroleum, which together account for 35 per cent of the assets. The fund has 24 sectors in its portfolio and has restricted its exposure to any single stock to less than 7 per cent of the asset.

Fund facts: DSPML Opportunities Fund was launched in May 2000. Mr Anup Maheshwari manages the fund. A minimum one-time investment is Rs 5,000, and Rs 1,000 in case of SIP.

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