DSP BlackRock Equity Fund

DSP BlackRock Equity Fund is an average performing funds in its category. This fund is managed by Apoorva Shah, who has over 24 years experience in investment. He is an aggressive fund manager and has been managing the fund since June 2006. If you already hold units in this fund you can stay put. New investors can look for better performing funds in this category. It should be borne in mind that returns of multi cap funds like this one can move in either directions more than that of large cap funds do.

Where does DSP BlackRock Equity Fund invest your money?

DSP BlackRock Equity Fund is a multi cap fund which means your money will be invested in companies across market cap. Large cap companies tend to be stable compared to mid cap and small cap companies. But small cap and mid cap companies can give kicker returns as they turn into large cap companies. Its portfolio has 41.66% exposure to stocks of large cap companies, 43.65% exposure to stocks of mid cap companies and 9.61% exposure to stocks of small cap companies.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for?
  • Child's Education
  • Child's marriage
  • Buying a home
  • Retirement
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Do not make DSP BlackRock Equity Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. DSP BlackRock Equity Fund can be part of your satellite portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has DSP BlackRock Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in April 1997, your value of investments would be around Rs 1.55 lakhs. The performance has been better or similar to other mutual funds in this category. The fund has been giving at around 8.96% every year for those who stayed invested for last 5.11 years.

Assume you had invested Rs 10,000 every month in DSP BlackRock Equity Fund through SIP for the past 5 years today you would have around Rs 7.69  lakhs.

How will DSP BlackRock Equity Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to de well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. We advise you to avoid too much of star gazing and future prediction.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. Be reminded that equities are one of the asset classes that have the potential to beat inflation.  Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of DSP BlackRock Equity Fund is 2.27%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. DSP BlackRock Equity Fund does not qualify for sec 80C ELSS benefits.

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