DSP BlackRock Opportunities Fund is one of the best-performing multi-cap funds in the market today. With returns that are competitive with other multi-cap funds and an experienced fund manager, what does the future of this fund look like?
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Among other multi-cap funds, this fund manages to outperform and is doing easily one of the top-rated funds in the market today. Read the full review to find out.
DSP BlackRock Opportunities Fund: Investment Objective
The scheme seeks to generate long-term appreciation and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the investment focus of the scheme.
The aim of this scheme is to strongly outperform plain equity funds which are far more diversified in their portfolio weightage, to minimise risk.
|Absolute returns (%)||-3.76||21.43||15.19||20.03||17.14||14.36|
|+/- Category (%)||-2.4||22.35||11.7||18.14||12.83|
DSP BlackRock Opportunities Fund Review
DSP BlackRock Opportunities Fund is a multi cap fund which has consistently outperformed its benchmark since its inception and is one of the most popular large cap fund in market today.
Multi cap funds are diversified funds, which invest in stocks across market capitalization. That is, their portfolio comprises of large cap, mid-cap and small cap stocks. They are relatively less risky compared to a pure mid cap or a small cap fund and are suitable for not-so-aggressive investors.
Key Points for DSP BlackRock Opportunities Fund is:
- DSP BlackRock Opportunities Fund has been rated as a 5-star fund by Groww and ranked 2 in Diversified fund category by Crisil ( for quarter ending December 2017).
- AUM of close to ₹ 4805 Cr.
- It is an old fund, launched in May 16, 2000. So, its performance can be ease to judge.
- Past 3 years return is 15.19 % per annum.
- Has consistently outperformed its benchmark BSE S&P 100 and NIFTY 50 since its launch.
- The top portfolio holdings of the fund include SBI, HDFC Bank Ltd., ICICI Bank, CCIL, Tata Steel, HPCL, BPCL, Larsen & Turbo Ltd., Maruti Suzuki India Ltd. etc.
- The holdings are balanced across various sectors with maximum weightage given to financial services ( 35.1 %) followed by energy ( 13.1 %).
Launched in 2000, DSP BlackRock Opportunities Fund, an aggressive multi cap fund, follows a go anywhere strategy, with no pre-defined market capitalisation limits while selecting stocks in the portfolio.
As the markets near life-time highs, the fund manager Rohit Singhania has a higher allocation to large caps, with such stocks constituting 65-70 % of the portfolio. The balance is spread across mid- and small cap companies.
Having most of the portion in large caps means most of your money will be invested in stocks of large sized companies. Large cap companies tend to be stable as compared to mid and small cap companies.
The fund has performed consistently and has been able to generate considerable returns over the different time period.
The fund has not only outperformed its benchmark across multi-trailing time period but has also outperformed its category funds by a considerable margin generating 21.43 % and 15.19 % returns over 1-year and 3-year period respectively.
Thus, the portfolio has healthy historical earnings growth when compared to category and has a rich valuation in terms of forward-looking cash flow metrics and prospective earnings basis.
As, the fund invests majorly in large cap funds and mid cap funds, and a very small proportion is invested in smalll cap funds. Thus, it is less risky than funds that invest majorly in small cap companies.
DSP BlackRock Opportunities Fund Manager
DSP BlackRock Opportunities Fund is managed by Rohit Singhania. Mr. Singhania is an MMS.Prior to joining DSPBR AMC he has worked with HDFC Securities Ltd. and IL&FS Investsmart Limited.
Rohit Singhania was appointed as the new skipper of this fund in June 2015. Another top performing fund managed by Mr. Singhania is DSP BlackRock Tax Saver Fund.
It was earlier helmed by Anup Maheshwari (December 2006–July 2012) and Apoorva Shah (August 2012–May 2015).
Singhania joined the fund house’s PMS division as a research analyst in 2005 and moved to the equity investment team in June 2009.
He is not new to fund management, having managed DSP BlackRock TIGER fund since June 2012. While he is a seasoned analyst, over the years he has matured as a portfolio manager and shows promise. His investment thesis is sound and well researched.
Multi Cap Funds of 2018
Other best multi cap fund options for 2018 are :
To look at some of the best performing funds from every category, check out Groww 30 best mutual funds to invest in 2018.
Disclaimer: the views expressed here are of the authot and do not reflect those of Groww.