The Business Bytes
TBB BUREAU
MUMBAI, JAN 08, 2024
DSP Mutual Fund has announced the launch of DSP Multicap Fund, an open-ended scheme that offers investors the flexibility to invest across large cap, mid cap and small cap stocks, investment styles and industries.
With dedicated market cap exposure to mid and small caps along with timely rebalancing, the multicap strategy offers investors better diversification and improvement in performance compared to the Nifty 500.
Despite investing in the same set of stocks, the multicap strategy has outperformed the Nifty 500 almost 8 out of 10 times over 5 year rolling periods between April 1, 2005 and November 30th, 2023.
The asset allocation of the scheme can be a minimum of 75% and a maximum of 100% in equity and equity related securities of which large, mid, and small caps can account for a minimum of 25% exposure and a maximum of 50%. The scheme can also have up to 25% exposure to equity and equity related overseas securities and Debt & Money Market Instruments and up to 10% in units issued by REITs and InvITs.
The New Fund Offer for DSP Multicap Fund which opened for subscription on January 8, will close on January 22, 2024.
“We believe, in the long-term, equity funds earn more than inflation and help us in growing our purchasing power. Equity investing is getting popular in recent times via direct stock investing, mostly in small caps. We also believe intermittently markets get exuberantly priced, especially currently in small & mid caps. These are times to be prudent. Believe in the long term but play defense in the near term. That’s where we would encourage the addition of 50% large caps – some global stocks too as there are opportunities in these two buckets and investors are ignoring these pockets.
Mostly, NFOs encourage lump sum one-time investments. However, we believe these are times to invest via SIP and STPs – basically spreading investment over the next few years. Hence, we are launching a SIP focused DSP Multi Cap Fund. It adds more importance to large cap/global stocks to the current popular craze of small and mid-caps. Apart from market caps, there are different phases when growth style does well and then long stretches when value style does well. We will blend both these styles in our multi cap fund to ensure investors don’t need to time them and create tax efficiency,” said Kalpen Parekh, MD & CEO, DSP Mutual Fund.
