This small-cap MF is strong bet for the long term | Economic Times

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.How the fund has performed 87036624Where the fund invests 87036646Basic factsDate of launch: 14 June 2007Category: EquityType: Small capAUM*: Rs 8,306 croreBenchmark: S&P BSE Small Cap Total Return IndexWhat it costsNAV**Growth option: Rs 110.6IDCW: Rs 47.505Minimum investment: Rs 500Minimum SIP amount: Rs 500Expense ratio*** (%): 1.88Exit load: 1% for redemption within 364 days*As on 30 September 2021; **as on 12 October 2021; ***As on 31 August 2021Fund manager: Vinit SambreTenure: 11 years, 3 months Top 5 sectors in portfolio (%) 87036666Top 5 stocks in portfolio (%) 87036674Recent portfolio changesNew entrants: Just Dial. CG Power & Industrial Solutions, CyientComplete exits: Dixon Technologies (India), Star Cement Increasing allocation: Butterfly Gandhimathi Appliances, Greenlam Industries, TTK Prestige. Manappuram Finance, KPR Mills, eClerx Services Ltd, Greenlam Industries, APL Apollo Tubes 87036678Should you buy? DSP Small Cap until a few years ago ran under the micro cap stamp. It was positioned into the small cap basket during the classification in 2018. Apart from its small-cap tilt, it retains a sizeable mid-cap presence. The fund manager’s strength lies in extensive bottom-up research, identifying strong, growth-oriented businesses with healthy cash flows and supported by capable management. The portfolio size has been cut sharply from 80 odd names to around 65 now, allowing healthy position sizing at the top end of the portfolio. The scheme’s performance has suffered over the past one year, dragging down its longer term return profile. However, the fund’s ability to contain downside risk still puts it on a strong footing for the long haul.Source: Value Research