DSP Mutual Fund came out with New Fund Offer (NFO), DSP Quant Fund on 20th May 2019 and the it is open to subscription till 3rd June 2019.

The objective of the scheme is to provide higher returns as compared to the underlying benchmark i.e. S&P BSE200 TRI.

Minimum amount to be invested is Rs. 500/- and any amount thereafter. The fund managers is Mr. Anil Ghelani.

This scheme focuses on elimination, selection and assigning of weights to specific companies excluding companies with high volatility, poor management and inefficient capital allocation, etc.

 

NFO Name

DSP Quant Fund
NFO Launch Date 20th May 2019
Last Date for Application 3rd June 2019
Minimum Investment Amount   500/-
Nature Open-ended
Fund Managers Mr. Anil Ghelani
Risk Moderately High
Benchmark S&P BSE200 TRI

Invest in DSP Quant Fund

If you want to invest in this NFO, the following steps must be followed.

  • Log in to your Groww account. If you are a new user,  sign up first– it operates online and takes 2-3 working days.
  • Decide the amount you would like to invest in DSP Quant Fund
  • Email Groww support to support@groww.in, specifying the amount and the name of the NFO.

When investing in this NFO, an investor must remember that it is an open-ended mutual fund. Also, the investor needs to invest at least 500 in it. This is an equity oriented mutual fund with investments focusing on a systematic and scientific way of risk management.

Investment Objective Of DSP Quant Fund

The investment objective of the scheme is to deliver superior returns as compared to the underlying benchmark over the medium to long term, through investing in equity and equity-related securities.

The portfolio of stocks will be selected, weighed and rebalanced using stock screeners, factor-based scoring and an optimization formula, which aims to enhance portfolio exposure of factors representing ‘good investing principles’ such as growth, value and quality within risk constraints.

Plans And Options Available For DSP Quant Fund

Various plans and options available for DSP Quant Fund are:

  • DSP Quant Fund (Growth Option)
  • DSP Quant Fund (Dividend Option)

DSP Quant Fund opened for subscription on 20th May 2019 and will stay open till 3rd June 2019. The core area of the scheme is to opt for the BSE200 and after that, a selection process is done and about 50 companies are pinned down and weights are allocated to them.

Investment Style

DSP Quant Fund is an open-ended equity fund which follows a three-step process of elimination, selection and assigning weights. By eliminating long term value detractors, selecting durable sources of alpha and following a quantitative weighting approach will ensure adequate diversification through stock and sector concentration limits.

The fund will begin with BSE200 and the elimination process will screen out companies with very high debt, excessive price volatility and inefficient capital allocation.

Such stocks shall be removed from the consideration set. The remaining stocks are ranked based on multiple factors representing quality, growth and value.

This process will result in the selection of about 50 companies to whom appropriate weights are allocated quantitatively. The portfolio will be rebalanced semi-annually.

Gold Exchange Traded Funds

Asset Allocation

Type of Instruments Minimum Allocation Maximum Allocation Risk Profile
Indian equities and equity-related securities including derivatives 95 % 100 % High
Debt and money market instruments 0 % 5 % Low to Medium
Units issued by REITs & InvITs

 

0 % 5 % Medium to High

The above allocation will be diversified in equities and equity-related securities, equity derivatives, securities issued by Central or State govt, fixed income instruments by government agencies, money market instruments as permitted by SEBI/RBI, etc and also into units issued by REIT & InvITs.

Fund Manager- Mr. Anil Ghelani

Mr. Anil Ghelani joined DSP Investment Managers in 2003. He has an experience of over 21 years.

He is the Fund Manager, Head of Passive Investments & Products in DSPIM. Anil is a Chartered Financial Analyst and Chartered Accountant.

Before joining DSP Mutual Fund, he worked with IL&FS, S. R. Batliboi, V. C. Shah & Co.

Who Should Invest in DSP Quant Fund ?

The open-ended equity scheme is suitable for investors who are seeking

  • Long-term capital growth
  • Investment in active portfolio of stocks screened, selected, weighed and rebalanced on the basis of a predefined fundamental factor model

DSP Group

DSP Group is a 152-year-old Indian financial firm.

The DSP Group is one of the oldest and most respected financial services firms in India which is headed by Mr. Hemendra Kothari. T

he firm commenced its stockbroking business in the 1860s and the family behind the group has been very influential in the growth and professionalization of capital markets and money management business in India.

Other options for investment offered by DSP Mutual Fund house are:

Tax Saver Category

These are tax saving mutual funds with a lock-in period of 3 years. It is also called an equity-linked saving scheme which is equity oriented and is generally preferred by investors whose income falls in a tax bracket and are looking to save tax.

DSP Tax Saver Fund
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
DSP Tax Saver Direct Plan Growth -3.73% 8.35% 11.37% 0.92% 77% Equity
(ELSS)
Moderately High

Mid Cap Fund

These funds are riskier than large-cap funds but are less risky than small-cap funds.

DSP Mid Cap Fund
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
DSP Midcap Direct Plan Growth -9.61% 6.32% 12.53% 1.0% 23% Equity
(Mid Cap)
Moderately High

Hybrid Funds

These are mutual funds which invest in both equity and debt. A mutual fund which invests 60% in equity and 40% in debt are called aggressive hybrid funds and funds which invest 40% in equity and 60% in debt are called conservative hybrid funds.

DSP Regular Savings Fund
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
DSP Regular Savings Direct Plan Growth -2.47% 4.08% 6.9% 0.59% NA Hybrid
(Conservative)
Moderately High

Debt Funds

These funds mainly invest in bonds and other debt instruments and are ideal for investors who want to optimize their current income by taking low to moderate levels of risk.

DSP Savings Fund
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
DSP Savings Direct Plan Growth 8.68% 7.22% 7.4% 0.23% NA Debt
(Money Market)
Moderately Low

Conclusion

Quant funds offer a systematic approach of investing through a scientific way of managing risk with minimum human intervention to avoid biases.

Investors willing to invest in this fund should understand that this is an open-ended equity fund investing with BSE200 as the benchmark across various equity and equity related instruments.

The fund may or may not perform depending on the market conditions since nobody can accurately predict market movements this model is tested on past records.

Also while investing it should be kept in mind that this is a new fund offer and does not have a track record. So, if someone is not comfortable in investing in an NFO then he/she can always look to invest in a mutual fund with a good track record. 

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww

 

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