The Hindu Business Line : DSPML Equity Fund: Invest

Over both periods, the fund has outpaced its benchmark, the Nifty, by a huge margin. It has managed to out-perform by picking up stocks outside the index; close to 50 per cent of the assets are invested outside the Nifty basket.

As the fund invests in a blend of large-cap and mid-cap stocks, it carries a higher risk profile than a pure large-cap fund.

However, the returns generated by the fund are far superior to other flexi-cap funds such as Franklin Flexi-Cap, HDFC Premier Multi Cap and Magnum Multi Cap.

Suitability: The fund is suitable for the investors with moderate risk profile. DSPML Equity Fund can be considered by investors who would like a significant exposure to mid-cap stocks to boost returns.

However, it offers better downside protection vis-À-vis pure mid-cap funds, as it has the flexibility to invest across market capitalisation ranges, depending upon market conditions.

Performance: The fund has generated a return of 75 per cent over a one-year period, beating its benchmark, the Nifty, by 20 percentage points. DSPML Equity has also outpaced the category average by a huge margin.

The fund outperformed broader indices such as the BSE 200 in 18 out of the last 24 months, rewarding its investors for risks taken. Its performance during correction periods also inspires confidence.

During the correction in February 2007, for instance, the fund was able to check the decline better than the BSE 200.

Portfolio: DSP ML Equity has a well-diversified portfolio of about 78 stocks.

The fund typically restricts its stock-specific exposure to less than 7 per cent. The top 10 stocks accounted for 28 per cent of the portfolio.

The mid- and small-cap stocks or stocks with market capitalisation of less than Rs 5,000 crore accounted for 31 per cent of the portfolio.

The fund aggressively churns the portfolio and utilises opportunities to book profit.

The latest fact-sheet suggests that the fund added afresh 11 stocks to the portfolio. A new addition was the recently listed Mundra Port & Special Economic Zone.

Fund facts: The fund was launched in April 1997 and Mr Apoorva Shah manages the fund.

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