105989  |  INF740K01797  |  4 star  |  Silver


$ 67.65

1-Day Total Return

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

TTM Yield




Total Assets

64.7 bil



Fee Level






Min. Inv.


30-Day SEC Yield




Investment Style

Small Growth
Morningstar's Take | 01/12/2017
by Himanshu Srivastava

The small/micro-cap segment of the Indian equity universe is a risky space in which to invest. Hence research experience and good execution are of paramount importance for portfolio managers in this area. Vinit Sambre fills the bill on these counts. He is a competent analyst with reasonable portfolio management experience under his belt. He has managed this fund since June 2010. That he is backed by a high-caliber team also adds to our conviction.

Sambre plies a bottom-up, buy-and-hold approach to picking stocks, scouting for growth-oriented companies that have sustainable competitive advantages over their peers and are leaders in their industries. Although he is valuation-conscious, he believes that the companies in which he invests should command a premium given their leadership positions in their respective industries. We believe this focus on longer-term strength is a positive and helps reduce the issue-specific risks associated with a small-cap fund. Sambre also invests a portion of the portfolio in value stocks. This approach can help reduce price risk in the portfolio, given the inherent growth bias here. Given the in-house capability of deeper analysis in the small and micro-cap space, Sambre has now added a new aspect of trading to his investment style where he invests roughly 5% of the portfolio to capture short-term market movements. Cash calls are not a part of the strategy.

That said, small/micro-caps are tricky beasts and the risks of running such funds are magnified. For instance, Sambre may find it difficult to exit stocks when liquidity dries up--a common event in the small- and micro-cap space. Moreover, the fund’s exposure to value stocks may lead to potential value traps. A growing asset size can pose challenges in the form of market-impact cost and opportunity cost. But on a positive note, the fund house has stopped accepting fresh inflows in the fund effective Feb. 17, 2017. Sambre so far has displayed an ability to contain downside risks in the portfolio. He appears at home with his investing style and has been fairly disciplined in his approach. Considering the above factors, we retain the fund’s Morningstar Analyst Rating of Silver.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Sambre selects companies with sustainable competitive advantages and dominant market shares.


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


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


Sambre combines growth-styled quality stocks with value plays when constructing the portfolio.


Sambre has delivered satisfactory results over his tenure running this fund.


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.

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