DSP Small Cap mutual fund review: A strong bet for the long term

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 the fund has performed

Where the fund invests

Basic facts

• Date of launch: 14 June 2007
• Category: Equity
• Type: Small cap
• AUM*: Rs 8,306 crore
• Benchmark: S&P BSE Small Cap Total Return Index

What it costs
NAV**

• Growth option: Rs 110.6
• IDCW: Rs 47.505
• Minimum investment: Rs 500
• Minimum SIP amount: Rs 500
• Expense ratio*** (%): 1.88
• Exit load: 1% for redemption within 364 days

*As on 30 September 2021; **as on 12 October 2021; ***as on 31 August 2021

Fund manager: Vinit Sambre
Tenure: _{11 years, 3 months}

Top 5 sectors in portfolio (%)

Top 5 stocks in portfolio (%)

Recent portfolio changes

• New entrants: Just Dial. CG Power & Industrial Solutions, Cyient
• Complete exits: Dixon Technologies (India), Star Cement
• Increasing allocation: Butterfly Gandhimathi Appliances, Greenlam Industries, TTK Prestige. Manappuram Finance, KPR Mills, eClerx Services Ltd, Greenlam Industries, APL Apollo Tubes

Should you buy?
DSP Small Cap until a few years ago ran under the micro cap stamp. It was positioned into the small cap basket during the classification in 2018. Apart from its small-cap tilt, it retains a sizeable mid-cap presence. The fund manager’s strength lies in extensive bottom-up research, identifying strong, growth-oriented businesses with healthy cash flows and supported by capable management. The portfolio size has been cut sharply from 80 odd names to around 65 now, allowing healthy position sizing at the top end of the portfolio. The scheme’s performance has suffered over the past one year, dragging down its longer term return profile. However, the fund’s ability to contain downside risk still puts it on a strong footing for the long haul.

Source: Value Research