Mutual Fund Investment with DSP India | Best MF Schemes
- 8 July 2020 | 213 Views | By Mint2Save
DSP is a joint venture between DSP Group which is a 150-year-old Indian financial firm and the world’s largest investment management firm. The name is very popular among investors. It is one of the premier asset management companies in India which is in the business of investing for years and maintains an excellent track record.
Who owns DSP mutual fund?
In 1860, the DSP Group began its stockbroking business and has contributed immensely towards the growth and professionalization of capital markets and money management business in India. DSP Mutual Fund is the world’s largest investment management firm and is trusted by millions to manage more money than any other investment firm in the world. Millions of small and big companies from around the world, retail investors, governments, large global foundations trust with their money.
They provide all types of schemes for investors like equity funds, debt funds, hybrid funds, international funds of funds, and solutions funds. You can invest in DSP Mutual Fund (DSPMF) directly from their website or through different discount brokers like Zerodha, ShareKhan, Groww, etc.
In this article, we are going to talk about some of their best funds in different categories.
Which DSP mutual fund is best?
While it is impossible to comment on the question due to various different categories in which the funds are categorized, we can explore various offerings by this investment house.
DSP MF: Equity
DSP MF equity funds are medium to high-risk funds that invest in equities and stocks that offer investors dynamic returns on their investments. These are good for investors who are looking for long term capital appreciation. You should know your risk appetite before you decide to invest in any mutual fund scheme.
DSP Top 100 Equity Fund
This fund falls under the moderately high-risk category. The funds generate capital appreciation by investing in equity shares of the 100 largest companies listed in India by market capitalization. The fund manager allocates around 97% of total assets in equity and equity-related instruments with 83.07% in large-cap stocks, 1.54% is in mid-cap stocks, and 2.36% in small-cap stocks. The fund size is Rs 2082 crores and the Expense Ratio is 2.19%.
DSP Equity Fund
This fund is suitable for investors who have a moderately high-risk appetite and needless to say have a long term investment horizon. The main objective of this is to deliver returns via capital appreciation in the long run by investing in a portfolio of equity shares of companies registered in India. The fund allocates around 90.72% in equity and remaining is in TREPS. The total number of stocks inequity is 52 which is higher than the category average of 43.58. The Large Cap Investments is 53.67%, Mid Cap Investments is 21.72%, Small Cap Investments is 7.99%, and the remaining 7.34% in others. The fund size is Rs 3151 crores and the Expense Ratio is 2.08%.
DSP Equity Opportunities Fund
This is also for investors who have a high-risk appetite and ready to stay invested for at least 3 years. Investors who decide to invest in this fund should be ready for the possibility of moderate losses in their investments. Fund has 91.45% investment in Indian stocks of which 41.37% is in large-cap stocks, 36.06% is in mid-cap stocks, and the remaining 7.17% in small-cap stocks. The fund size is Rs 4439 crores and the Expense Ratio is 1.96%.
DSP Small Cap Fund
Being a small-cap fund, the risk in this is moderately high. Since the risk is high, the rewards will also be high. In the bear market, investors should be ready for a significant fall in investment value. Investors should invest at least for 5 years for good returns. The fund invests 92.92% in the Indian equity market of which small-cap stock investment is 73.28% while 19.51% is allocated in mid-cap stock. The biggest allocation of the funds is in IPCA Laboratories Ltd.(Pharmaceuticals), Atul Ltd.(Chemicals), and Manappuram Finance Ltd.(NBFC).
DSP Midcap Fund
This is another fund with moderately high risk and falls under a multi-cap fund. This fund has invested 91.58% in Indian stocks which is divided as – 58.14% in mid-cap stocks, 16.26% in large-cap stocks, and 12.12% in small caps stocks. Investors should keep a horizon of 3-4 years if they are planning to invest in this fund. The highest percentage of investment in this fund is in IPCA Laboratories Ltd., Divis Laboratories Ltd., Atul Ltd., and Coromandel International Ltd.
DSP Focus Fund
This falls under a multi-cap fund and allocates 73.99% in large caps, 12.79% in midcaps, and a mere 0.97% in small caps. Since most of the investment is in large caps, the risk is moderate compared to other funds we have seen where which allocated maximum in small/mid-cap. The fund size is approximately Rs 1640 crores and the Expense Ratio is 2.19%. The fund has approximately 20% in the banking sector – approximately ten percent each in HDFC and ICICI bank.
Top Equity Fund Manager
Kedar Karnik – joined DSP from Axis Asset Management and has over 10 years of investment experience. He has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has previously worked with HSBC Asset Management and CRISIL Ltd.
DSP MF: Tax Saving Funds
DSP Tax Saver Fund
This scheme has a long term investment horizon and unlike other equity funds where investors can withdraw money at any given point of time, this fund has a lock-in period of 3 years. This scheme is for investors who are looking to avail tax deduction of up to Rs 1.5 lakh under 80C of Income Tax Act. The fund has 56% invested in large caps, 15% in a mid-cap, and approximately 10% in small caps stock. The biggest investments of this fund are in ICICI bank, HDFC Bank, Bharti Airtel, and Reliance Industries. The fund size is approximately Rs 5408 crores and the Expense Ratio stands at 0.93%.
Read about Hacking Maximum Benefits out of ELSS Schemes.
Top Tax Saver Fund Manager
Rohit Singhania is the Fund Manager for the DSP Tax Saver Fund. He is also the co-fund manager of the New Energy Fund and DSP Natural Resources. He is with DSP since September 2005, he joined as Portfolio Analyst for the firm’s Portfolio Management Services (PMS) division, which manages discretionary accounts and provides advisory services to institutional clients. Later he was moved to the Institutional Equities Team of DSP Investment Managers (June 2009). Previously, he was with HDFC Securities Limited as a part of its Institutional Equities Research Desk.
DSP MF: Debt Funds
These funds are designed to function as tax saving instruments that offer investors medium returns with much more safety and reliability in comparison to equity funds.
DSP Government Securities Fund
This is one of the top-rated funds under DSP. The fund has 99.03% investment in Debt of which everything is in Government securities. This is a low-risk fund where fund managers first and only priority is the safety of the investments. The return in this scheme ranges between 6% and 8%. The fund size is Rs 1036 crores and the Expense Ratio is 1.09%.
DSP Money Manager Fund
This is another low-risk fund where all investment is in low-risk securities. This fund is mainly for those who are looking to invest for the short term and don’t want to keep the money sitting in their bank account where returns are very less. They can invest in this fund and get better returns than what saving bank account offers. The fund size is Rs 2384 crores and the Expense Ratio is 1%.
DSP Credit Risk Fund
This is another highly rated fund by DSP which invests 99.12% in government securities and 0.08% in funds invested in very low-risk securities. This is best for investors who want to invest money for a longer duration, prefer less risky assets, and want to stay away from equity funds. The fund size is Rs 1411 crores and the Expense Ratio is 0.5%.
Top fund Manager for Debt Funds
Vikram Chopra – He joined DSP from L&T Investment Management and brings with him over 16 years of investment experience. He has also previously worked with IDBI Bank, Fidelity, and Axis Bank Ltd.
DSP MF: Hybrid Funds
These funds are aimed at delivering risk-adjusted returns by investing in a combination of fixed income instruments and equities.
DSP Equity & Bond Fund
The scheme blends the high-return potential of equity with the stability of debt to generate long term capital appreciation and current income. The fund has invested 70.77 percent in Indian stock of which 41.53% is in large-cap stocks, 16.91% is with mid-cap stocks, and balance 6.79% with small-cap stocks. Fund also has a 24.24% investment in Debt of which 13.48% is invested in very low-risk securities and 10.58% in government securities. Since the majority of investment is in the equity sector, the risk is on the higher side. The fund size is Rs 5538 crores and the Expense Ratio is 1.9%.
DSP Regular Savings Fund
This is a low-risk fund since the major investment is in Debt. The fund has 23.46% investment in Indian stocks of which 9.49 is in large-cap stocks, 7.19% is in mid-cap stocks and 4.08% is in small-cap stocks. The majority 75.42% is in Debt of which 7.81% is in Government securities and the remaining 67.61% is invested in very low-risk securities. The fund size is Rs 207 crores and the Expense Ratio is 2.17%.
Top Fund Manager in Hybrid
Saurabh Bhatia joined DSP Investment Managers in July 2017 as Vice President in Fixed Income Team. Saurabh has over 17 years of experience in Fixed Income. Before joining DSP, he worked for ICICI Bank Ltd, Sahara India Financial Corporation Ltd., HSBC Asset Management (India) Private Ltd, Tower Capital and Securities Pvt. Ltd and Chandrakala Money And Capital Management Ltd.
DSP MF – Fund of Funds
Which is the best mutual fund to invest in 2020? Fund of funds can very much be the answer that you are searching for. A fund of funds is also known as a multi-manager investment. It is a pooled investment fund that invests in other types of funds, meaning its portfolio contains a different underlying portfolio of other funds.
DSP World Agriculture Fund
This fund invests in shares of foreign companies. Investors who are ready to stay invested for a minimum of 5 years should consider this fund. The fund managers also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. Investors can expect gains higher than fixed income options but this is a high-risk fund and investors should be ready for ups and d9+9owns in investment value. This fund invests more than 97% in the equity market. The fund size is small, Rs 25.88 crores and Expense Ratio is 2.29%.
Top fund Manager in Fund of Funds
Jay Kothari has been with DSP Investment Managers since May 2005 and has been with the Investment function since January 2011. He joined the firm as a member of the Sales team (Banking) in May 2005. Jay was working for Standard Chartered Bank for a year in the Priority Banking division before joining DSPMF.
There are numerous mutual funds and the number is expected to increase, as financial literacy reaches new dimensions. When it comes to equity-based investments, patience plays a key role. Patience is one parameter, which, though immeasurable, can alter all the differences between two investors. Contrary to what happens in a job, an investor with an IQ of 180 but lesser patience, can very well stay behind a patient investor with 140 IQ.
DSP mutual funds offering catalog intends to provide a solution for each necessity and need.
However, it is always recommended for the investor to assess his financial situation, consult his advisor, and then seek to invest in a mutual fund.