Investor Education
DSP Value Fund NFO: Investment Objective, Returns, Entry & Exit Load
DSP Value Fund-NFO
DSP Mutual Fund has announced the launch of the DSP Value Fund. The scheme would be investing in securities of various companies by following a value investing approach.
The New Fund Offer (NFO) starts from 20th November 2020 and will end on 04th December 2020.
Investment Objective
The investment objective of the scheme is to seek to generate consistent returns for the investors by investing in equity & equity related or fixed income securities of the companies or bodies which are currently undervalued.
Suitability
This scheme is suitable for investors with moderately high-risk appetite who are -
- Interested in long term capital appreciation & income.
- Interested in investing in an equity scheme which invests in undervalued securities.
What is Value Investing?
Traditionally, Value Investing has been defined as an investment strategy that involves investing in securities at a discount to their intrinsic value. With the changing nature of businesses over time, other approaches to value investing strategy have developed and now includes making investments in:
- Special situations such as mergers or spin-offs
- Companies with a moat which are offering high returns on invested capital.
- Companies following an Activist strategy like hostile takeover, etc.
DSP Value Fund - Value Investing Principles
The scheme will aim to :
- Invest in quality companies available at reasonable prices.
- Achieve diversification in the portfolio by adding good foreign companies along with the domestic companies which will reduce the overall volatility & risks in the portfolio.
- Maintain cash, respecting the high valuation levels, for making investments at the right time i.e when the market reaches reasonable valuations.
Why invest in the DSP Value Fund?
- Value investing strategy has been able to offer high returns over the long term along with lesser volatility.
- Keeping high cash at the times of stretched valuations in the market allows the fund to invest in quality companies at a time of reasonable valuations. This could offer good returns over the long term.
- Diversified Portfolio: Following a value investing strategy, the fund not only invests in domestic markets but in international markets too so as to achieve the benefits of diversification. Investments are also diversified across sectors & market capitalizations.
Asset Allocation Pattern-
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Equity & Equity related instruments of companies including derivatives | 65 | 100 | Moderate to High |
| Debt, Securitized debt & Money market instruments | 0 | 35 | Low |
| Units that are issued by REITs and INVITs | 0 | 10 | Moderate to High |
About the scheme-
| Name of the fund | DSP Value Fund |
| Fund launched by | DSP Mutual Fund |
| Asset Management Company | DSP Investment Managers Private Limited |
| Type of scheme | An open-ended equity scheme investing in securities of companies while following the value investment strategy. |
| Investment Objective | The investment objective of the scheme is to generate consistent returns for investors by investing in undervalued equity & equity-related and fixed income-generating securities. |
| Benchmark | Nifty 500 Value 50 TRI |
| Entry Load | Not Applicable |
| Exit Load | 1% of applicable NAV - If units are redeemed or switched out within 12 months of purchase. Nil - If units are redeemed or switched out after 12 months of purchase. |
| Minimum Application Amount | Rs. 500 & any amount thereafter |
| Minimum Additional Amount | Rs. 500 & any amount thereafter |
| STP & SWP | Available |
| Plans Available |
|
| Options |
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| Fund Managers | Mr. M.Suryanarayanan– (Equity Portion) Mr. Jay Kothari (Overseas investments) |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Monthly | 12 | Rs. 500 & any amount thereafter |
| Quarterly | 12 | Rs. 500 & any amount thereafter |
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