DSP BlackRock Opportunities Fund

DSP BlackRock Opportunities fund is being managed by Anup Maheshwari and Harsha Upadhyay.Anup has 19 years experience in this domain and has been managing this fund since 2006. Harsha has 16 years of experience and joined this September. Anup who is an able manager adopts a combination of top-down and bottom-up strategy while picking stocks. The fund’s return has not been on par with similar funds in the category. If you have invested in this fund, keep a close watch on where performance is headed. Do not allocate more than 30% of your total investments to this fund. If you are a new investor you can skip this one for a better performing large cap fund.

Where does DSP Blackrock Opportunities Fund invest your money?

DSP BlackRock Opportunities fund is a large and mid cap fund which means most of your money is invested in giant, large and medium size companies across sectors. DSP BlackRock Opportunities fund has 64.44% exposure to large size companies, 29.09% exposure in medium size companies and 4.54% exposure to small cap companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns. Unfortunately it does not happen too frequently.

Suitable for what?
  • Child's marriage
  • Child's education
  • Retirement Planning
  • Home Purchase
Not Suitable
  • Creation of wealth
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Do not make DSP Blackrock Opportunities 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. Do not make 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. DSP Blackrock Opportunities Fund can be part of the satellite portfolio.

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

If you had invested Rs 1 lakh when the fund was launched in April 2000 the value of your investments would be around Rs 2.11 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 30875 . The performance has been not better than or similar to other diversified mutual funds. The fund has been giving at around 5% every year for those who stayed invested for last 5 years. 

Assume you had invested Rs 10,000 every month in DSP Black Rock Opportunities through SIP for the past 5 years today you would have just around Rs 7.75 lakhs.

How will DSP Blackrock Opportunities 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 do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. 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?

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 Opportunities Fund is 2.69%. 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 during 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 Black Rock Opportunities does not qualify for sec 80C ELSS benefits.

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