fund watch
DSP Large Cap
Date of posting : 08 May 2025
Fund Watch
DSP Large Cap
Date of posting : 08 May 2025
Preamble
The house "DSP" is steeped in history and entwined with the birth, evolution and maturing of equity in general and the Bombay Stock Exchange in particular. Going back in time to almost 160 years, the house has evolved from just a broking concern to a multi disciplinary financial house. In the case of mutual funds, again they have been at the forefront bringing in the biggest and the best names in fund management globally into the country. Starting with Merrill LYNCH and then Blackrock. However from 2018 the fund house has been on it's own.
Fund Details
Starting Date
: 10th March 2003Fund Type
: Open Ended Equity Large Cap FundBenchmark
: BSE 100
Management Details
Fund Manager
: Abhishek SinghSchemes Managed
: DSP Regular Savings,DSP Aggressive Hybrid,DSP Large Cap,DSP Equity SavingsTotal Asset Size
: 4,644.76 Crores [ 30th April 2025]
AAUM Growth (Rs. in Cr)
Fund Philosophy
The fund
manager is guided by the core questions
1. Can the
business be held for 10 years?
2. Is the
downside limited?
3. Are the
embedded expectations conservative?
Largely
these are the building blocks to a portfolio constructed with a conservative
basis and
downside
protection oriented.
Investment Style
Higher weights to Return on Invested Capital (ROIC) and Cash Flows in a company.
Typically
not to buy stocks in the most expensive bucket (based on quantitative
parameters i.e. high Price to Earnings, Price to Book, Price to sales
multiples).
Intrinsic
Value is the main determinant and this value is determined in a particular
manner within the fund management team.
Have a
higher threshold for valuations in the Sell (exit) decisions.
Prioritize
risk mitigation over returns.
Performance Parameter
Lumpsum (Amount Invested | Rs. 1,00,000/-)
| Time Frame | Amount | Returns Percentage |
|---|
for <= 1 year- absolute returns; for > 1 year- returns using CAGR
SIP (Amount Invested | Rs. 10,000/- Per Month)
| Time Frame | Amount | Returns Percentage |
|---|
Return - Continuous
| Nov'24 - May'25 (6M) | May'24 - May'25 (1Y) | May'23 - May'25 (2Y) | May'22 - May'25 (3Y) | May'20 - May'25 (5Y) | |
|---|---|---|---|---|---|
| Benchmark | -0.49 | 8.63 | 17.76 | 14.75 | 22.32 |
| Scheme | 0.83 | 15.26 | 24.54 | 20.86 | 22.90 |
| Category Avg | -1.69 | 8.42 | 19.00 | 16.27 | 21.83 |
Returns- Discrete Period
| Nov'24 - May'25 (6M) | Nov'23 - Nov'24 (1Y) | Nov'21 - Nov'23 (2Y) | |
|---|---|---|---|
| Benchmark | -0.49 | 29.71 | 4.17 |
| Scheme | 0.83 | 39.10 | 5.18 |
| Category Avg | -1.69 | 32.66 | 4.21 |
On a continuous time basis, the fund has beaten the benchmark. Over the last 5 years the difference has been little but from the 3 years period on the out performance has been exemplary and the alpha has been nearly 50 percent.
On a
discrete basis, the recent numbers are very encouraging and gives credence to
the downside protection philosophy the fund manager has committed to. The outperformance has been a consistent feature.
Return Less Index
Return Less Index Rank
From the
period covering 3 years, the outperformance rank is at or near the top. Even
though the segment has heavy competition.
On an
absolute basis, the annual alpha has been at or near 6%.
Quartile
Decile
The medium term quartile rank is at the top and so are the decile values.
The near
term miss of the scheme from the top quartile is by a whisker and this is borne
out by a deeper analysis using the decile rank.
Over the longer span the fund has been in the second quartile from the top but that again proves the overall consistency over the last few years.
Risk Adjusted Alpha (Jensen's) and The Risk Ratio
| Time Frame | Jensen’s Alpha | Beta | Volatility |
|---|
The
statistical numbers throw up no surprises.
The fund has
taken lower risks, been reasonably less volatile and yet has made superior risk
adjusted returns.
The Jensen
measure over the last two years is superb and indicates that there has been a
method in managing and it indicates it will sustain for the medium term, going
forward.
Fund Composition Analysis
HIGHLIGHTS THE TOP HOLDINGS AND PORTFOLIO STRUCTURE.
| Scrip | April'25 | October'24 | April'24 | October'23 | April'23 |
|---|---|---|---|---|---|
| ICICI Bank | 9.10 | 9.57 | 9.63 | 9.21 | 9.82 |
| HDFC Bank | 9.07 | 9.50 | 9.66 | 9.11 | 3.42 |
| ITC | 5.52 | 5.78 | 5.98 | 4.51 | 4.58 |
| M&M | 5.00 | 5.27 | 5.65 | 5.13 | 2.88 |
| Axis Bank | 4.91 | 4.59 | 6.03 | 7.60 | 7.53 |
| Bajaj Finance | 4.84 | 5.29 | 5.79 | 3.09 | 1.96 |
| Cipla | 4.14 | 3.11 | 2.73 | 4.14 | 4.78 |
| Kotak Mahindra Bank | 4.08 | 3.44 | 0.00 | 0.00 | 0.00 |
| SBI Life Insurance Company | 3.94 | 4.15 | 4.08 | 4.49 | 3.23 |
| NTPC | 3.91 | 3.44 | 2.08 | 0.00 | 0.00 |
Top Industries
| Industries | Content (%) |
|---|---|
| Bank - Private | 26.98 |
| Automobiles | 10.43 |
| Pharmaceuticals | 6.92 |
| Insurance | 6.52 |
| IT Services & Consulting | 5.61 |
| Cigarettes & Tobacco Products | 5.18 |
| NBFC | 4.22 |
| Oil Drilling & Exploration | 4.07 |
| Bank - Public | 3.56 |
| Power- Generation & Distribution | 3.50 |
Portfolio Breakup
| Debt | Equity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Scrip | Cash% | Sov% | Corp Debt% |
Small Cap% |
Mid Cap% |
Large Cap% |
Very Large Cap % |
Others | Wt PE |
The
composition points to consistency and a hold orientation.
The top 10
holdings consistently make up to the 50 percent mark.
Addition to the top has been very gradual and almost like calibrated through a fine sieve. The only addition is Kotak Bank in the last 3 years and NTPC in the last 5.
Although the
exposure to a few sectors/industries that make the top 50 indicates lumpiness,
the outcome justifies the same. Besides the top sectors are the heavy
capitalized values in the index and in a large cap fund the bias is expected.
The large
cash holding indicates how well the "cautious mode" is made. And the
preparedness for taking potential position for upsides.
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The numbers
indicate a very true to label fund managed with a very "downside
protect" approach with a core portfolio that has settled into a groove of
performance.
The
statistic is very encouraging. The risk parameters are well within the
conservative limits.
The
performance has been more than exemplary - leading the category and beating the
benchmark comprehensively.
And all this
has happened over a reasonably turbulent time.
Disclaimer : The entire report is based on independent utilization of statistical tools for evaluating performance in mutual funds. myplexus.com and its personnel have taken every precaution to ensure the authenticity of data . Every precaution has been taken to ensure the statistical outputs are correct. However, myplexus.com or any of its personnel cannot be held responsible for outcome of actions taken on the basis of its report on this fund or any other.
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