Top MFs: DSP Flexi Cap Fund

Objectives

DSP Flexi Cap Fund is a Multi Cap mutual fund scheme from DSP Mutual Fund.

The scheme seeks to generate long-term capital appreciation, from a portfolio which is substantially constituted of equity and equity related securities and may also invest a certain portion of its corpus in debt and money market securities, in order to meet liquidity requirements from time to time. In Picking out individual investment opportunities for the portfolio, the investment manager will seek both value & growth.

Fund Highlights

This fund has been in existence for 10 yrs, having been launched on 01/01/2013.

DSP Flexi Cap Fund has ₹7,656 Crores worth of assets under management (AUM) as on 31/12/2021 and is medium-sized fund of its category.

The fund has an expense ratio of 0.78%, which is close to what most other Multi Cap funds charge.

It is benchmarked against NIFTY 500 Total Return Index.

Exit load of 1% if redeemed less than 12 months

Minimum investment required is Rs 500 and minimum additional investment is Rs 500. Minimum SIP investment is Rs 500.

Returns

DSP Flexi Cap Fund Direct Plan-Growth returns of last 1-year are 25.63%. The fund has doubled the money invested in it every 2 yrs.

Its trailing returns over different time periods are: 36.94% (1yr), 21.84% (3yr), 17.77% (5yr) and 19.72% (since launch). Whereas, Category returns for the same time duration are: 37.8% (1yr), 18.07% (3yr) and 15.9% (5yr).

Sector and Stock wise exposure

The fund has the majority of its money invested in Financial, Automobile, Construction, Technology, FMCG sectors. It has taken less exposure in Financial, Automobile sectors compared to other funds in the category.

The fund's top 5 holdings are in ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Avenue Supermarts Ltd., Ultratech Cement Ltd.

Asset Allocation & Portfolio Composition

The asset allocation of the fund comprises around 97.45% in equities, 0.0% in debts and 2.55% in cash & cash equivalents.

While the top 10 equity holdings constitute around 42.0% of the assets, the top 3 sectors constitute around 52.26% of the assets.

The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 60.69% in giant & large cap companies, 31.14% in mid cap and 8.17% in small cap companies.

Tax Implications

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

2. 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.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.

5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.

Fund manager

The DSP Flexi Cap Fund is managed by Atul Bhole (Since Jun 01, 2016) and Abhishek Ghosh (Since Jan 01, 2021).

Expert Comment

DSP Flexi Cap Fund Direct Plan-Growth scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is above average.