DSP BlackRock Micro Cap Fund: Superior risk-reward profile

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 10-year return of 22.57%, the fund has outperformed both the category average (17.95%) and the benchmark return (7.37%). by a wide margin.


Growth of Rs 10,000 vis-a-vis category and benchmark

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The fund boasts a healthy track record of outperformance.

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Annualised performance (%)

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The fund has outperformed across timeframes.

Yearly performance (%)

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The fund has consistently outperormed in recent years.

BASIC FACTS
Date of launch: 14 June 2007
Category: Equity
Type: Small Cap
Average AUM: Rs 5,523.05 cr
Benchmark: S&P BSE Small Cap Index

WHAT IT COSTS
NAVS (As on 11 Apr 2017)
Growth option: Rs 59.08
Dividend option: Rs 35.88
Minimum investment: Rs 1,000
Minimum SIP amount: Rs 500
Expense ratio (As on 28 Feb 2017) (%): 2.39
Exit load: 1% for redemption within 364 days

FUND MANAGERS
Jay Kothari / Vinit Sambre
Tenure: 4 YEARS / 6 YEARS AND 9 MONTHS
Education: BMS, MBA / B.Com, FCA


WHERE DOES THE FUND INVEST?

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HOW RISKY IS IT?

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SHOULD YOU BUY?
This fund suspended fresh sales a few months ago after witnessing a surge in inflows on the back of chart-topping performances in recent years. It was facing a challenge in building decent-sized positions apart from limited number of opportunities at prevailing valuation. To accommodate the higher corpus, it has had to expand its portfolio from around 60 stocks in December 2015 to 80-odd stocks, resulting in a longer tail in the portfolio and diluting exposure in its top bets. The fund has cut exposure to over-priced stocks and tapped cheaper bets, while ensuring that liquidity position is comfortable. It may not be able to sustain earlier alpha (margin of outperformance over the benchmark), but continues to offer a superior risk-reward profile in its category.