The Hindu Business Line : DSPML Top-100 Equity Fund: Invest

An investment can be considered in DSPML Top-100 Equity Fund. With an encouraging return of 58 per cent since launch, its performance is comparable with established peers. The fund has also found a berth among the top quartile of diversified funds. The fund invests predominantly in the top 100 companies by market capitalisation listed on the BSE and the NSE.

Since the investments are in large-cap stocks, it is ideally suited for the conservative investor. However, it carries a risk profile similar to any diversified fund. Investors who are invested in our top picks such as Franklin India Bluechip and HDFC Top 200 can consider investment in this fund as part of portfolio diversification. They can opt for the systematic investment plan to minimise the market risk. Further, the fund's returns through the SIP route have been good over the past three years.

Performance: DSPML Top 100 was launched in February 2003, right at the start of a three-year bull-run, but hit a major bump during the market correction of May 2006.

However, this was a brief blip as a majority of the top large-cap stocks recouped their losses and some of them even went past the May peak.

As the fund is yet to go through a sustained period of stagnation, it is difficult to evaluate its performance in different market cycles. The one-year performance appears pretty good as it has delivered a return of 54 per cent and outpaced its benchmark BSE-100 index by 6 percentage points.

Its three-year track record appears similar to large-cap funds such as HDFC Top-200 and Franklin India Bluechip. The fund actively manages the portfolio.

Portfolio Overview: DSPML Top 100 Equity fund has 39 stocks in its portfolio and it accounted for 42 per cent of the assets.

The fund has well-diversified sectors and the top three choices are software, telecom services and consumer non-durables, which together cornered 35 per cent of the asset allocation.

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