DSP Blackrock Small Cap Fund

Introduction

DSP Blackrock Small Cap Fund is designed by DSP Blackrock Mutual Fund. The fund aims to provide long-term capital appreciation by investing in the equities or stocks of the companies that are not part of the top 300 companies as per market capitalization.

It is always believed that higher risk equals greater returns and DSP Blackrock Small Cap Fund is proving the same thing. The mutual fund offers various growth schemes, which are designed to cater the short-term investment goals. But, if invested for a longer period, the fund scheme helps to achieve desired growth.

Investment Strategy and Benchmark

The primary investment objective of this fund is to generate long-term capital appreciation from a portfolio predominantly constituted of equity/equity-related securities of small-cap companies. At times the fund manager will also participate in other equity/equity-related securities to achieve optimal portfolio construction.

It is not assured that the investment objective of the Scheme will be realized. The fund is benchmarked against S&P BSE Small Cap Index.

Key information About DSP Blackrock Small Cap Fund

1. The current Net Asset Value(NAV) of the DSP Blackrock Small Cap Fund is Rs. 112.58 for the Growth option of its Regular plan and Rs. 119.65 for its Direct plan as of October 2021.

2. The fund currently holds Assets Under Management(AUM) worth Rs. 8,306 Crores as of September 2021.

3. The trailing returns over different periods of its Regular Plan are 85.44%(1year), 28.89%(3years), 16.16%(5years), and 18.28%(since launch). Whereas, the category returns for the same time duration are 97.03%(1year), 27.88%(3years), and 18.26%(5years).

The trailing returns over different periods of its Direct Plan are 87.08%(1year), 30.02%(3years), 16.98%(5years), and 24.12%(since launch). The category returns for the same time duration are as same as the Regular Plan.

4. The expense ratio of the fund is 1.88% for its Regular plan and 1.04% for its Direct plan as of August 2021.

5. The minimum investment required is Rs. 5000, the minimum additional investment is Rs. 1000 and the minimum SIP investment is Rs. 500.

Asset Allocation

1. The asset allocation of the DSP Blackrock Small Cap Fund constitutes around 98.73% in equities, 0.0% in debts, and 1.27% in cash & cash equivalents.

2. The top 10 equity holdings of this fund comprise around 32.45% and the top 5 sectors constitute around 18.05% of the assets.

3. The fund largely invests across market capitalization, around 1.87% in giant & large-cap companies, 38.27% in mid-cap, and 59.37% in small-cap companies.

Portfolio Of DSP Blackrock Small Cap Fund

I. No of stocks – 65.
II. Top 10 Stocks – 32.45%.
III. Top 5 Stocks – 18.05%.
IV. Price-Book(P/B) ratio – 3.33.
V. Price-Earnings(P/E) ratio – 18.81.

Top 10 Stock Holdings

I. Nilkamal – 4.40%.
II. Atul – 3.56%.
III. Ipca Laboratories – 3.50%.
IV. Chambal Fertilizers & chemicals – 3.31%.
V. Welspun India – 3.28%.
VI. KPR Mills – 3.17%.
VII. Tube Investments of India – 3.04%.
VIII. Suprajit Engineering – 2.90%.
IX. Ratnamani Metals & Tubes – 2.71%.
X. Manappuram Finance – 2.58%.

Dsp Blackrock Small Cap Fund Regular Plan

Details

I. NAV – Rs. 112.58(as of October 2021).
II. IDCW – Rs. 48.35.
III. Returns – 18.37%(since launch in June 2007).
IV. Returns per year(5 years avg) – 16%.
IV. Benchmark – S&P BSE Small-Cap TRI.
V. Risk – Very High.
VI. Type – Open-ended (Equity).
VII. Asset Under Management(AUM) – Rs. 8,306 Crores(as of September, 2021).
VIII. Expense ratio – 1.88%(as of August 2021).
IX. Turnover – 12%.

Minimum investment – Rs. 500.
Minimum additional investment – Rs. 500.
SIP Investment – Rs. 500 (Minimum).
Minimum STP investment – Rs. 500.
Minimum SWP investment – Rs. 500.
No. of cheque – 12 (Minimum).
Minimum withdrawal – N/A.
Lock-in period – Not applicable.
Exit load – 1% for redemption within 365 days, Nill after 365 days.

DSP Blackrock Small Cap Fund Direct Plan

Details

I. NAV – Rs. 119.65(as of October 2021).
II. IDCW – Rs. 51.42.
III. Returns – 24.27%(since launch in January 2013).
IV. Returns per year(5 years avg) – 16.8%.
IV. Benchmark – S&P BSE Small-Cap TRI.
V. Risk – Very High.
VI. Type – Open-ended (Equity).
VII. Asset Under Management(AUM) – Rs. 8,306 Crores(as of September, 2021).
VIII. Expense ratio – 1.04%(as of August 2021).
IX. Turnover – 12%.

Minimum investment – Rs. 500.
Minimum additional investment – Rs. 500.
SIP Investment – Rs. 500 (Minimum).
Minimum STP investment – Rs. 500.
Minimum SWP investment – Rs. 500.
No. of cheque – 12 (Minimum).
Minimum withdrawal – N/A.
Lock-in period – Not applicable.
Exit load – 1% for redemption within 365 days, Nill after 365 days.

Taxation

1. Gains over Rs. 1 lakh are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.

2. No tax is to be paid as long as you continue to hold the units.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG). Any cess/surcharge is not included.

4. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

Dividends

1. Dividends are added to the income of the investors and taxed according to their respective tax slabs.

2. Further, if an investor’s dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

Who Should Invest

When investors invest for 6-7 years or more, then expected gains could comfortably beat the inflation rate. This fund invests in small to medium-sized companies. So, tends to fall more when stock prices fall compared to funds that invest in larger companies.

So higher returns are expected in the long term, along with ups and downs on the way. Investors who are looking to invest money for long-term and high returns could invest in this fund.

Fund Manager

Mr. Resham Jain and Mr. Vinit Sambre are currently managing DSP Blackrock Small Cap Fund. Mr. Resham Jain is a B.Com, MS, FRM, CFP, and CFA(US). Before joining DSP Mutual Fund, he worked with B&K Securities India Pvt Ltd, Jai Hind Projects Ltd, Arvind Ltd, Anagram Knowledge Academy Ltd, etc.

Mr. Vinit Sambre is a B.Com and FCA. Before joining DSP Mutual Fund, he worked with DSP Merrill Lynch Ltd, IL & FS Investsmart Ltd, Unit Trust of India Investment Advisory Services Ltd, Kisan Ratilal Choksey Shares and Securities Pvt. Ltd, and Credit Rating Information Service of India Ltd.

Contact

DSP Investment Managers Private Limited.
Address – NATRAJ, Office No. 302-3rd Floor-Plot No. 194, MV Road Junction Western Express Highway, Andheri East Mumbai – 400069
Call – 022-66178000
Website – www.dspim.com

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