DSP Mutual Fund has launched the DSP Multicap Fund, an open-ended scheme that provides investors with flexibility to invest across large, mid, and small cap stocks, investment styles, and industries. This strategy offers better diversification and performance improvement compared to the Nifty 500.
The multicap strategy has outperformed the Nifty 500 8 out of 10 times over 5 years between April 1, 2005 and November 30, 2023. The scheme can allocate a minimum of 75% and maximum of 100% in equity and equity-related securities, with large, mid, and small caps having a minimum exposure of 25% and a maximum of 50%.
It can also have up to 25% exposure to equity and equity-related overseas securities, Debt & Money Market Instruments, and units issued by REITs and InvITs. Kalpen Parekh, MD & CEO, DSP Mutual Fund asserted, “Apart from market caps, there are different phases when growth style does well and then long stretches when value style does well. We will blend both these styles in our multi cap fund to ensure investors don’t need to time them and create tax efficiency”.
