100080  |  INF740K01011  |  3 star  |  Neutral

NAV

$ 57.24

1-Day Total Return

-1.12
%
INR | NAV as of 5/23/2017 9:30:00 AM | 1-Day Return as of 22 May 2017

TTM Yield

9.12%

Load

Multiple

Total Assets

23.9 bil

Expenses

2.33%

Fee Level

--

Turnover

90%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Flexicap

Investment Style

Large Growth
Author
Morningstar's Take | 27/12/2016
by Himanshu Srivastava

The fund saw two manager changes since Apoorva Shah relinquished his management responsibilities in July 2015. After him, the fund was jointly managed by Harish Zaveri and Vinit Sambre for a short while before finally landing in the hands of new manager Atul Bhole in June 2016. He joined DSP BlackRock’s equity investment team from Tata Mutual Fund in May 2016. Bhole comes from a research background and has four years of portfolio management experience in his stint with Tata. Most of the funds managed by him had a decent track record.

Pleasingly, the fund’s broader investment strategy of managing it with a flexicap approach remains unchanged. However, Bhole has a different style of investing than his predecessor Shah. Shah used to combine his in-depth understanding of companies with factors like market sentiment, news flows, and momentum while making investments, which used to result in high portfolio turnover for the fund. Bhole, on the other hand, prefers a buy-and-hold approach. Broadly, the process is simple, straightforward, and not really distinctive in nature. Hence the success of the fund would largely depend on Bhole’s execution capabilities. On that front, he is yet to make his mark on the fund. Also, the fund was a part of the large-cap Morningstar Category earlier, and its higher-than-average exposure to mid-/small-cap stocks used to provide it an edge over peers. However, it is now part of the flexicap category where it is competing with similar offerings.

Under Shah, the fund earned a Morningstar Analyst Rating of Gold based on our conviction in his management skills and execution capabilities within the large-cap category. But these are yet early days for Bhole as the lead manager on this fund. While he shows promise, we have yet to build the level of conviction in him which is required to assign a positive rating to the fund. In the light of that, we are downgrading the fund’s rating to Neutral from Gold, until we gain more conviction in Bhole’s investment skills, execution capabilities, and ability to deliver outperformance within the flexicap category over the long term.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Large-cap stocks generally dominate the portfolio.

People

These are yet early days for Bhole as a lead manager on this fund.

Parent

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

Process

Growth-oriented investment approach.

Performance

The fund is yet to build a long-term performance track record under Bhole.

Price

The fund’s expense ratio is lower than the median of the India flexicap 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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For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

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