POSTED BY March 10, 2009 COMMENTS (8)ON
Let’s see a good Equity Diversified mutual fund today, DSP Black Rock Top 100, is an old fund, Its name was DSP ML Top 100 earlier, but now its renamed. It comes from one of the best Mutual funds houses DSP Black Rock.
The fund has very good record and consistently outperformed its Benchmark. To get more information see here
If you see last 1 years returns its only -35%, which is much better than others who have given close to -50% return.
1 yrs : -35%
3 years : 1.2%
5 years returns : 15%
Since Inception : 29%
It has consistently outperformed its category average by good difference. Which is one the evaluating criteria.
Its portfolio is well diversified with high concentration on Large cap companies (50%), which is good.
Derivatives usage : There is one point to note in the portfolio is that the fund also uses tries to take advantage of Futures (derivatives). This is a smart action, considering Fund manager understand the risks. Else it can be disaster.
Its rated as 5 star fund and is places in Low risk High Return Grade by value research online. Though we should not put lot of focus on ratings, its one of the things to look at.
Conclusion : Overall the fund looks good. We have not done any detailed analysis but see it in a way which should be done at the minimum level by an average investor. The main thing is not the product, its the usage and utilization . You can take a normal fund and make most out of it using SIP and portfolio re balancing.
Please do your own findings and see if the fund fits your risk-appetite and criteria. People who want to invest money for atleast 3-5 yrs and without putting lot of efforts on monitoring the market , can invest there money using SIP in this Fund.
Keep the money invested for at least 3-4 yrs, and keep monitoring the fund performance minimum once every 6 months.
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