DSP Blackrock Top 100 Equity Fund is a large-cap equity fund, launched on March 10, 2003. Let us know more about the fund, whether we should buy it, sell or retain it.
Basic Information and Costs
DSP Blackrock Top 100 Equity Fund is ranked against the benchmark S&P BSE 100. The minimum investment for this fund is Rs.1000, while the minimum SIP amount is Rs. 500. The turnover of the fund is 73 percent and the AUM (Assets Under Management) size is Rs. 3,602 crore (as on July 31, 2016)
On an average, the fund is termed ‘high risk’ with ‘average returns’. Like all equity funds, there is an exit load of 1 percent, if you redeem the fund before 365 days. The expense ratio for this fund is 2.27 percent.
DSP Blackrock Top 100 is helmed by Harish Zaveri, who is associated with the fund since 2015. He has experience of more than 20 years in equity research. Prior to him, the fund was managed by Apoorva Shah, who moved on to managing offshore funds of the fund house.
DSP Blackrock Top 100 Equity Fund allocates 99.42 percent of its corpus in equities with 0.03 percent in debt and 0.05 percent in others. On a sector-wise perspective, it is seen that the fund allocates 37.67 percent in financial, 14.90 percent in automobile, 13.35 percent in energy, 8.20 percent in healthcare and 6.32 percent in diversified options.
According to the information as on July 31, 2016, the top holdings for this fund are HDFC Bank (9.16 percent), Maruti Suzuki India Ltd (5.98 percent), Infosys Ltd (5.69 percent), IndusInd Bank (5.11 percent), Bharat Petroleum Corp. Ltd (4.62 percent), ICICI Bank Ltd (3.97 percent), Bajaj Finance Ltd (3.84 percent), Hindustan Petroleum Corp Ltd (3.78 percent), Ultratech Cement Ltd (3.73 percent) and Tata Motors DVR Ltd. (3.68 percent).
Since its launch, DSP Black rock Top 100 Equity Fund has delivered compounded return of 23.68 percent . When you look at its performance in the past ten years, you will see that with 13.82 percent return per annum, it has beaten the benchmark return of 10.03 percent and category average of 10.68 percent.
The 5-year return of 13.52 percent per annum is better than the benchmark return of 12.09 percent and category average of 13.32 percent. The 3-year return of the fund is 20.73 percent as against the benchmark return of 17.77 percent and category average of 20.03 percent. In the past one year, the fund has delivered 18.60 percent return as against the benchmark of 14.90 percent and category average of 14.97 percent.
Though DSP Blackrock Top 100 Equity Fund has beaten the benchmark and category average at various points of time, there are better funds that have done much better in all these years. Take the example of Birla Sun Life Frontline Equity Fund which was established in 2002 (one year before DSP Blackrock Top 100) and delivered 19.38 percent in 1 year, 25.43 percent in 3 years, 18.06 percent in 5 years and 15.88 percent in ten years.
Apoorva Shah has been credited with scripting the success story of DSP Blackrock Top 100 among other funds. With his exit, there is a feeling of uncertainty in terms of fund performance. Apoova would factor in market sentiments along with his in-depth understanding and experience of stocks to steer the success of the fund. His philosophy stemmed from his belief that large caps usually trade close to their fair valuations, compared to small and mid-cap funds.
DSP Blackrock Top 100 Equity Fund follows an investment approach in which almost the entire corpus is vested in large caps, compared to the category approach in which about 20 to 25 percent in pooled in small to mid-caps. Due to a structure like this, the fund can pose a risk of underperformance compared to its peers, as it happened in 2010.
The fund went into a lean patch in 2013, as it was hopeful that the market would turn bullish in the first half, positioning the fund in the same trajectory. The reverse happened, and stock calls on some of its holdings like Infosys Ltd, went awry, hurting the fund’s performance. Later in the same year, the fund’s approach turned defensive. While DSP blackrock Top 100 Equity Fund did recover somewhat in 2014, it does not look as flattering as some of its peers.
Another thing to note is that the investment styles of the past fund manager Apoorva Shah and Harish Zaveri, are different. The latter has quoted that he is not going to trade actively and that he is not in favor of frequent churning in the portfolio, just because a stock goes up a few percentage points. In the contrary, the risk-taker Apoova Shah sought to distinguish from its peers by positioning the large-cap differently.
Should I buy, sell or hold?
We would recommend you to sell the fund and move on to better large-cap options with an experienced fund manager.
Good Asset Management Company
Good Fund Size
Recent change in Fund Manager
High Expense Ratio
- Editor Rating
- Rated 2 stars
- DSP Blackrock Top 100 Equity Fund
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