102434  |  INF740K01151  |  4 star  |  Bronze

NAV

$ 86.96

1-Day Total Return

-0.98
%
INR | NAV as of 23/05/2017 09:30:00 | 1-Day Return as of 22 May 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

15.8 bil

Expenses

2.39%

Fee Level

--

Turnover

122%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Sector - Infrastructure

Investment Style

Large Growth
Author
Morningstar's Take | 29/12/2016
by Himanshu Srivastava

Rohit Singhania started comanaging this fund in June 2010 and took over as a lead manager in June 2012 from Anup Maheshwari. As a comanager, Singhania has had a strong influence on the stock/sector picks and portfolio construction even during Maheshwari’s tenure. We believe his skills are well suited to the job as he has extensive analyst experience in tracking infrastructure-related sectors.

Singhania’s core investment universe encompasses infrastructure sectors and those that are subject to economic reforms. Sectors such as technology, consumer staples, autos (consumer-related), and domestic pharmaceuticals don’t form a part of the investment universe. Singhania follows an unconstrained approach while investing and invests in growth and value-style stocks, with strong emphasis on the former. He focuses on understanding the key drivers of a business, the company’s underlying assets, management capabilities, and scalability prospects. He invests in issues whose returns on equity and returns on capital employed are on an uptrend, and uses historical valuations to evaluate a company’s fair value. We note that Singhania’s stock-picking criteria are varied and flexible enough to allow for nearly any type of pick. The strategy relies heavily on the manager getting his calls right, leaving little margin for error. The risks are amplified here, as stocks from the infrastructure sector are prone to intense cyclicality. Having said that, this is Singhania’s favourite playing ground and the strategy allows him to play to his strength.

The fund was earlier a part of the flexi-cap Morningstar Category, where its restrictive investment mandate failed to deliver desired results vis-à-vis its more flexible peers. Hence we gave it a Morningstar Analyst Rating of Neutral. However, now it is a part of Morningstar’s newly created Sector-Infrastructure category. When compared with similar offerings, it makes a compelling investment option for investors seeking to benefit from the growth in the infrastructure sector. Further, with an experienced manager at the helm, the fund merits a rating upgrade to Bronze from Neutral.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Singhania stays true to the fund’s mandate and investment criteria.

People

Singhania’s experience in tracking infrastructure-related sectors makes him an apt fit for the job.

Parent

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

Process

Singhania largely plies a bottom-up approach, combining growth and value styles of investing.

Performance

The fund’s performance in the new sector-infrastructure Morningstar Category looks promising.

Price

The fund’s expense ratio is lower than the median of the India sector-infrastructure 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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