Listen to this article
DSP Mutual Fund has launched DSP Multicap Fund, an open-ended scheme that will allocate at least 25% of its corpus each in large cap, mid cap and small cap stocks.
The fund house recommends investors to invest in the fund through SIP route. It said, “Currently, small & midcap stocks have outperformed large cap stocks by a wide margin and are also now more expensive on a trailing basis. This leaves the possibility for relative underperformance of the small & mid cap segment versus large caps in the near term. Historically, a fall in mid & small cap stocks have been excellent opportunities to collect more units which resulted in better returns when the market went up eventually. Hence, investors are recommended the SIP route which has shown to be a better strategy during market peaks as well as flat markets.”
In a press release, Kalpen Parekh, MD & CEO, DSP Mutual Fund said, “Mostly, NFOs encourage lumpsum one-time investments. However, we believe these are times to invest via SIP and STPs – basically spreading investment over the next few years. Hence, we are launching a SIP focused DSP Multi Cap Fund. It adds more importance to large cap/global stocks to the current popular craze of small and mid-caps. Apart from market caps, there are different phases when growth style does well and then long stretch when value style does well.”
