Fund review: DSP BlackRock Focus 25 Fund

In times when markets are seeing uninterrupted liquidity in absence of clear trend in earnings growth, DSP BlackRock Focus 25 Fund with its focused investments in large-sized companies provides good scope for better returns.

The scheme's fund managers Harish Zaveri and Jay Kothari invest close to 80 per cent of the portfolio money in large-sized companies, which are high conviction bets. Being large-sized companies, they distinguish themselves by their long-established brands, relatively better balance sheets, high adherence to corporate governance, dominant market share and most important, their ability to generate superior earnings growth. In essence, the fund managers focus on growth stories in large-sized companies and tweak their portfolios as and when favourable developments transpire in this space. During the past three-year and five-year periods, the fund delivered 15.8 per cent and 18.5 per cent returns respectively, as compared to its benchmark S&P BSE 200, which has given 10 per cent and 15 per cent returns respectively.

In the past six months, the fund managers have added diversified companies in its portfolio, which are placed reasonably well in their respective sectors. A few prominent companies which the fund managers enhanced exposure in the portfolio in the past six months are ITC, Lupin, Shree Cement, Yes Bank, Sun Pharmaceutical and Bharat Petroleum Corporation.