Investors looking for a fund with consistent performance through diversified multi cap holdings, can consider DSP Blackrock Equity Fund. It is an equity oriented open ended fund launched in April 1997.
The fund has shown impressive run and was outperforming the benchmark over all time periods covering the last five year, says Arnav Pandya. In fact, its strong showing through good and bad times makes it a choice as one of the core holdings of the portfolio for an investor.
Check out his analysis of the fund-
DSP Blackrock Equity Fund
Nature: Equity oriented open ended
Inception: April 1997
Assets under Management: 2422 crore at the end of November 2011
Fund Manager: Apoorva Shah
• At the end of November 2009 the fund had the highest exposure to software at nearly 10% of the portfolio. This was followed by consumer non durables, pharma and banks all of whom were around the 9% exposure mark. There were around 74 holdings in the portfolio of the fund with BPCL being the top holding though the exposure here was just 4.3%.
Some of the other companies with a high holding include Glaxo Smithkline Pharma, Reliance Industries, Tata Power, ITC and Gail. The fund was outperforming its benchmark the S&P CNX Nifty over the one, three and five year time periods though it had a high portfolio turnover of nearly 3 times.
• Six months later the exposure to banks had gone up to around 12% of the portfolio and this remained the top sector. This was followed by industrial capital goods, pharma and consumer non durables. In terms of the top holdings of the fund this consisted of Infosys, Reliance Industries, SBI, HDFC Bank and ONGC. The funds turnover ratio was down over the last six months and it was still a strong outperformer over the last several years.
• By the end of November 2010 there was a sharp change in the overall portfolio position with software now the top sector followed by industrial capital goods and banks. Pharma and petroleum products were not far behind in terms of exposure. There was a bit of a change in the top holdings too with Reliance industries now at the top followed by SBI, BPCL, TCS, Infosys and ICICI Bank. The fund continued its impressive run and was outperforming the benchmark over all time periods covering the last five years.
• After six months the portfolio remained extremely diversified with the top sector being banks but with just a 10% exposure. This was followed by software and industrial capital goods. In terms of the top holdings it was large caps that made up the top five positions with HDFC Bank at the top followed by TCS, HDFC, BPCL and ICICI Bank. All the holdings of the fund remained below the 5% mark. The fund now had the S&P CNX 500 as the benchmark index and the fund was outperforming the benchmark for all time periods.
• The fund managed to keep the portfolio turnover ratio at 1.65 times at the end of November 2011 with banks being the top sector. This was followed by consumer non durables, Pharma and auto. The fund had the highest exposure to HUL followed by Kotak Bank, SBI, BPCL and L&T. The fund remained a strong outperformer over its benchmark.
• This fund is meant for investors looking for consistent performance through diversified multi cap holdings. Its strong showing through good and bad times makes it a choice as one of the core holdings of the portfolio for an investor.