The fund has delivered 26% CAGR since the fund’s inception in 2003.
Launched in February 2003, DSP Black Rock’s flagship Fund – DSP Black Rock Top 100 Fund has completed 10 years, having delivered 26% CAGR returns since inception. The fund is managed by Apoorva Shah.
The fund has beaten its benchmark BSE 100 by investing in stocks that have a market capitalization of over Rs. 10000 crore. Over a 3 and 5 year period, the fund has delivered a return of 7 and 9 per cent, respectively, beating its benchmark. On a 5 year daily rolling return basis, the fund has beaten its benchmark over 80 per cent of the time.
The bets on stocks such as Reliance Industries, BHEL & Hindustan Unilever, though risky, could turn out to be right with deregulation rules benefiting the oil sector and potential pick- up in the investment cycle. Along with refineries & capital goods, the fund is also exposed to infrastructure and base metals. Having juggled between auto, oil & gas, power, infrastructure, FMCG & software, the fund has maintained its holdings only in banks.
Currently the portfolio of DSP Top 100 comprises; 20% bank stocks, 13.9% software, 13% petroleum products, 9.3% consumer non-durables and 43.8% others. The fund currently manages Rs 3,615 crore.
On an average, the fund exits about five to seven stocks a month, while entering a similar number. The churn suggests that the fund buys stocks with a specific target in mind and these churns are beneficial, since it allows the fund to make the most of stock momentum. Shah draws on factors such as market sentiment, news flow, and momentum to construct portfolios.
