101635  |  INF740K01243  |  3 star  |  Bronze

NAV

$ 198.66

1-Day Total Return

1.25
%
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

33.0 bil

Expenses

2.28%

Fee Level

--

Turnover

59%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Large-Cap

Investment Style

Large Growth
Author
Morningstar's Take | 06/12/2017
by Himanshu Srivastava

The leadership of DSP BlackRock Top 100 Equity changed when Harrish Zaveri took the helm in July 2015 from Apoorva Shah, an accomplished manager who had led the fund since April 2006. Under Shah's stewardship, the fund built an impressive track record, but the change in manager here is not as sharp as break as it seems. Though Zaveri doesn't have prior portfolio management experience, he is a decorated analyst who has an extensive research experience spanning over two decades. He also heads the firm's research desk.

Despite the new manager, the fund's core investment strategy of investing in top 100 stocks by market capitalisation hasn't changed. However, Zaveri's investment approach is different from that of his predecessor. Shah used to combine his in-depth understanding of companies with factors like market sentiment, news flow, and momentum while making investments, which used to result in high portfolio turnover for the fund. On the other hand, Zaveri 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 Zaveri's execution capabilities. On that front, with extensive research experience under his belt and the backing of one of the more stable teams in the industry, Zaveri has the necessary skills and resources to make this strategy work.

Under Shah, this fund had a Morningstar Analyst Rating of Gold because of our conviction in his management capabilities and execution skills, which helped the fund to deliver superior peer-relative returns over the long term. Although Zaveri is new to portfolio management, he shows promise. His extensive research experience and in-depth understanding of stocks will aid him here. Therefore, in the last review, we downgraded the fund to Bronze from Gold given the change in its manager, but we still believed that the fund under Zaveri had the wherewithal to outperform the benchmark index and Morningstar Category average over the long term. We maintain the same stance and reiterate its Bronze rating.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

A true-blue large-cap portfolio.

People

Harrish Zaveri has extensive research experience spanning over two decades.

Parent

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

Process

A growth-oriented, bottom-up strategy.

Performance

There is room for improvement.

Price

The fund's expense ratio is lower than the median of the India large-cap Morningstar 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

Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission.

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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