Comments
DSP BR Micro Cap, a scheme focussed on investing in small-cap and mid-cap stocks, has beaten the BSE Small cap index over three- and five-year periods.
Over this timeframe, the fund has given 1.3 and 7.2 per cent returns, respectively.
In the past one year, the fund has performed in line with its peer HSBC Small Cap by delivering -3.6 per cent, but has underperformed Reliance Small Cap which managed 2 per cent positive returns.
Sector preference
In January 2010, the fund was overweight on industrial capital goods, construction and consumer non-durables. However, it trimmed its allocation subsequently and shifted focus to software and pharma which are defensive. But these defensives outperformed the broader markets during the second half of 2010.
BSE Healthcare Index continues to outperform the broader index and is hovering at new highs.
The fund has been increasing its allocation to the pharma sector from mid-2009.
Allocation to banks was increased from the last quarter of 2011. This became the top sector in the fund’s portfolio with holdings of 11.9 per cent as of March 2013.
Since bottoming out in late 2011, banks were on a strong bull-run till late 2012, outperforming the small cap index. Consumer durables and media and entertainment sectors have re-entered the fund’s portfolio in the last one year.
The scheme has reduced its exposure to the ferrous metal sector from 7 per cent in October 2011 to 2.6 per cent in March 2013.
Stock choice
DSPBR Micro Cap has a regular holding in more than 40 stocks. Indoco Remedies, a pharma company, found berth in the portfolio in October 2010 and its allocation was increased to 4.8 per cent as of March 2013.
It is the fund’s top portfolio stock. Following a strong rally in 2009 and 2010, the stock has been trading range-bound.
Solar Industries is another top portfolio stock which the fund entered in February 2012, it has delivered 27 per cent returns in the last one year.
Some of the top holding stocks that the fund exited in the last one year are Allahabad Bank, Strides Arcolab, Zuari Global and Timken India.
Some of the fund’s top portfolio stocks, namely NIIT Technologies, Siti Cable Network, Lovable Lingerie, WABCO India and Disa India are underperforming for the past one year.
In late February 2013, the fund house changed fund managers. The new fund managers are Vinit Sambre and Jay Kothari.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.