Risk-averse market ride at the cost of returns

FUND ANALYSIS: DSPML Top 100 Equity

The fund's past performance is nothing to write home about. In 2004 and 2005, it even underperformed the category average.

The year 2006 saw a change in the fund's performance when it delivered a top quartile return. As a result, its 1-year return (42 per cent) was ahead of the category average (31.37 per cent), while its 3-year return matched the category average.

A poor performance in 2005 led to investors pulling out of the fund. But a better show in 2006 saw the AUM rising to the current corpus of Rs 314 crore.

Though it primarily invests in the top 100 large-cap firms, there has been occasions, when mid caps occupied more than 10 per cent of the portfolio. Soon after its launch in early 2003, mid caps occupied more than 20 per cent of its portfolio.

The portfolio lacks concentration. In the past few months, it averaged around 40-43 stocks with no single stock occupying more than 7 per cent of the portfolio.

The fund does not even take concentrated sector bets. In the past few months, technology sector stocks accounted for 26 per cent of its portfolio. The next sector "" diversified "" follows with an allocation of around 13 per cent.

The fund does not jump in and out of stocks but holds on to them. It remains invested in TCS and Infosys since August 2004 and July 2003 respectively.

This fund can be targeted at those looking for a risk-free market ride and willing to compromise on the returns.