101635  |  INF740K01243  |  3 star  |  Bronze

NAV

$ 184.74

1-Day Total Return

-0.82
%
INR | NAV as of 6/23/2017 9:30:00 AM | 1-Day Return as of 23 Jun 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

35.4 bil

Expenses

2.28%

Fee Level

--

Turnover

107%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Large-Cap

Investment Style

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

The leadership of DSP BlackRock Top 100 Equity Fund changed when Harish 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 had built an impressive track record. Having said this, the change in the manager here is not as sharp a break as it seems. Though Zaveri doesn’t have prior portfolio management experience, he is a decorated analyst who has extensive research experience spanning over two decades. He currently heads the fund house’s research desk.

Despite the change, the fund’s core investment strategy of investing in stocks from top 100 stocks by market capitalisation remains intact. 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. Zaveri, 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 depend largely on Zaveri’s execution capabilities. On that front, with an extensive research experience under his belt and backing of one of the more stable teams in the industry, in our opinion, Zaveri has the necessary skills to make this strategy work.

This fund's prior Morningstar Analyst Rating of Gold was due to our conviction in Shah’s management capabilities and execution skills, which helped the fund to deliver superior peer relative returns. Though Zaveri is new to portfolio management, he shows promise. In our opinion, his research experience and in-depth understanding on stocks will aid him in portfolio management. Therefore, while the change in the manager warrants a downgrade, in our opinion, the fund under Zaveri has the wherewithal to outperform the benchmark index and Morningstar Category average over the long term. Hence it merits a positive rating. In the light of the same, we assign the fund a Bronze rating for now.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

A true blue large-cap portfolio.

People

Zaveri has extensive research experience spanning over two decades.

Parent

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

Process

Growth-oriented bottom-up strategy at play.

Performance

The fund’s performance so far under Zaveri’s leadership has been impressive.

Price

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

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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