104481  |  INF740K01128  |  3 star  |  Silver

NAV

$ 56.33

1-Day Total Return

1.29
%
INR | NAV as of 15/12/2017 10:30:00 | 1-Day Return as of 15 Dec 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

51.1 bil

Expenses

2.50%

Fee Level

--

Turnover

31%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Small/Mid-Cap

Investment Style

Mid Growth
Author
Morningstar's Take | 05/12/2017
by Himanshu Srivastava

Though portfolio manager Vinit Sambre comanaged this fund since July 2012, he took its independent charge in July 2015 after its erstwhile manager Apoorva Shah relinquished management responsibility and moved to the fund house’s offshore division. Shah is a seasoned manager, and under him (March 2008-June 2015) the fund built an impressive track record.

Sambre is a competent analyst and also the dedicated small/mid-cap specialist with the fund house. He has reasonable portfolio management experience under his belt too. Hence, the change in the leadership here is not as sharp a break as it seems. The fund’s strategy allows Sambre to play to his strengths, which makes him an apt replacement for Shah. That he is backed by a high-calibre team adds to our conviction.

The fund’s broader investment strategy has not changed. Having said that, Sambre has a different investment style compared with Shah. For instance, factors such as market sentiment, news flow, and momentum formed the crux of Shah’s investment approach, which often led to above-average turnover. Sambre, on the other hand, plies his signature style of buying into growth-oriented quality stocks and staying invested for the long haul. This has resulted in the fund’s turnover ratio coming down since the time he took its reins. Sambre focusses on long-term strength of companies, which reduces the issue-specific risks associated with small/mid-cap funds. His relatively pure take on small/mid-caps versus the India small/mid-cap Morningstar Category norm is a positive in our opinion. Expectedly, while the fund is likely to gain more than a typical peer in up markets, it also runs the risk of faring worse in down markets. During shorter time frames, it can witness bouts of intense volatility and significant underperformance.

Sambre is a capable manager, and his experience in running similar strategies is noteworthy. He appears at home with his investing style and has been fairly disciplined in his approach. Under him, the fund has the wherewithal to outperform its benchmark index and category peers over the long term. Hence, we retain the fund's Morningstar Analyst Rating of Silver.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Companies with sustainable competitive advantages and dominant market shares.

People

Vinit Sambre is an able analyst and an experienced manager backed by a strong team.

Parent

We believe DSP BlackRock ranks among the best asset managers in the country.

Process

Combining growth-styled quality stocks with value plays.

Performance

In his short tenure as a manager for this fund, Vinit Sambre has delivered satisfactory results.

Price

The fund’s expense ratio is lower than the median of the India small/mid-cap category.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

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