DSP is all set to launch its value fund
DSP Investment Managers Private Limited is all set to launch its value fund which would be an open-ended scheme with an objective of capital appreciation through value investing. There are almost 14 funds in this category.
The table below gives a synopsis of their performance over a different period.
|
Funds
|
Trailing Returns (%)
|
|
1-Year
|
3-Year
|
5-Year
|
|
Aditya Birla Sun Life Pure Value Fund
|
3.98
|
-8.68
|
4.91
|
|
HDFC Capital Builder Value Fund
|
6.84
|
1.23
|
8.59
|
|
ICICI Pru Value Discovery Fund
|
12.73
|
3.83
|
6.93
|
|
IDBI Long Term Value Fund
|
7.00
|
N/A
|
N/A
|
|
IDFC Sterling Value Fund
|
5.95
|
-3.33
|
7.54
|
|
Indiabulls Value Fund
|
9.75
|
-1.77
|
4.72
|
|
JM Value Fund
|
5.13
|
2.42
|
11.54
|
|
L&T India Value Fund
|
8.45
|
1.03
|
9.16
|
|
Nippon India Value Fund
|
8.07
|
2.81
|
8.47
|
|
Quantum Long Term Equity Value Fund
|
5.02
|
1.75
|
8.07
|
|
Tata Equity P/E Fund
|
6.38
|
2.56
|
11.46
|
|
Templeton India Value Fund
|
2.13
|
-3.36
|
5.57
|
|
Union Value Discovery Fund
|
9.69
|
N/A
|
N/A
|
|
UTI Value Opportunities Fund
|
13.40
|
7.22
|
9.40
|
Further, DSP’s value fund is said to be benchmarked against Nifty 500 Total Returns Index (TRI), whereas most of the value funds are benchmarked against S&P BSE 500 TRI and only two funds are benchmarked against Nifty 500 TRI. Therefore, from a pure comparison perspective, there are seven funds that would be its true peers.
From the asset allocation perspective, the scheme is said to allocate 65 per cent of its assets to Indian equities and up to 35 per cent to global equities. Having exposure to global securities will help this fund to have better diversification. Also, the scheme will invest in debt, money market instruments, cash or take arbitrage opportunities up to 35 per cent. Such investments would be done when the fund manager sees no opportunities available.
Having said that, if you are planning to invest in a value fund, do make sure that your investment horizon is very long term of say over 10 years. Having said that, such a long-term horizon does get rewarded handsomely. Further, investing via Systematic Investment Plan (SIP) would be prudent.
The scheme would be open for subscription from November 20, 2020.