DSP BlackRock T.I.G.E.R. was one the first few funds to position itself in such a way as to ride the infrastructure boom. And what a ride it had!
It’s first few years ever since its launch in 2004 saw it post impressive returns. From 2008 onwards it began to falter. The fund’s recent performances have coincided with a down cycle in most sectors of the infrastructure segment. Analyst Himanshu Srivastava believes that the fund falls short of his expectations and would like to see investors being rewarded on a sustained basis.
During its decade-long history, the fund has seen various fund managers at the helm – Soumendra Nath Lahiri, Anup Maheswari and Apoorva Shah. Rohit Singhania, the current lead manager of this fund, has been the co-manager since June 2010 and has exerted a strong influence on the portfolio construction in terms of sector exposure and stock picks.
What Srivastava finds in the fund’s favour is the presence of a strong investment team and an able asset manager. Based on that, he re-assigns the fund a Neutral rating.
Analysis of DSP BlackRock funds:
Understanding the rating
Morningstar analysts assign the ratings on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, a Neutral rating, and a Negative rating.
Unlike the Morningstar Rating (star rating) which assigns 1 to 5 stars based on a fund's past risk-adjusted returns versus category peers, the Analyst Rating is the summary expression of Morningstar's forward-looking analysis of a fund.
The Analyst Rating is not a market call but reflects an analyst's conviction in the fund's ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis over the long term.
The methodology to arrive at this rating is based on five key pillars--Process, Performance, People, Parent, and Price.
To understand in more detail how the analyst rating is arrived at, click here.
To check the ratings assigned to various funds, click here.
For an explanation on why funds with a sub-par performance still get a high analyst rating, click here.
