DSP BlackRock Micro Cap Fund: A good bet for long-term investors

This fund is managed by Vinit Sambre. In the past one year, mid-and smallcap companies have done better than benchmark indices. One of the chief reasons for the high interest in mid-and small-cap companies is the certainty of robust earnings and their valuations. In the coming quarters as earnings growth kicks in, interest in mid-and small-cap companies is likely to grow and there maybe re-rating of valuations in select stocks. DSP BlackRock Micro Cap, in the past five years, has distinguished itself from peers by taking brave calls, especially in cyclicals. These calls are taken bearing in mind a company’s turnaround plans and high prospects of improving return on capital employed. The fund manager has bought stocks which have shown good growth, and are available at good valuations. Investors should consider investing in this scheme with a time horizon of three to five years.