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Wednesday, June 30, 2010

Mutual Fund Review: DSPBR Top 100 Equity

 

 

A LARGE-CAP bias, consistency of returns and good downside protection makes the fund a good pick for a core holding of any portfolio.

With a strategy to invest in the top 100 companies by market capitalisation, the fund has outperformed its peers in a consistent fashion and is the best performing fund over the longrun among its peers set.

Launched in February 2003, it has turned in returns ahead of its peers every year and in the market downturn in 2008, it shed just 45.54 per cent against category's 52.32 per cent.

The fund manager is not hesitant of taking aggressive sectoral bets and at the same time making quick in and out of sectors in case of opportunities or lack of it.

The fund looks fairly diversified with around 38 stocks in the portfolio over the past one year and the top five holdings accounting for close to 25 per cent of the portfolio.

Although, the allocation to a particular stock has exceeded eight per cent on quite a few occasions, investors don't have to worry about this because with a large-cap bias, the portfolio is high on liquidity.

There are stocks which have appeared for a considerable number of months in the fund's portfolio, showing the buy and hold strategy of the fund but the fund manager is seen investing intermittently in such kind of stocks.

This high degree of churning is also reflected in the high turnover ratio, as the fund has the second highest portfolio turnover ratio of 316 per cent among funds of DSPBR Mutual Fund. a The impressive performance of the m fund in all market conditions makes it a good pick for the core holding of any mutual fund portfolio.

 

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