Mutual Fund Focus - DSP BlackRock Top 100 Equity Fund

Investment Objective

• This scheme invests in equity securities and equity related securities of the 100 largest corporates, by market capitalization, listed in India
• DSP BlackRock Top 100 Equity Fund received multiple accolades in 2008 from various Mutual Fund Awards like: CNBC TV18- CRISIL, ICRA, Morningstar etc.

Who Should Invest?

• An investor looking at investing for the time horizon of at least 3 - 5 years
• An investor with medium to high risk appetite willing to invest in an equity diversified fund
• An investor whose investment objective is capital appreciation or capital growth

About the Fund Manager - Apoorva Shah

• Education: B.Com and PGDM (IIM Ahmedabad)
• Experience: Mr. Shah has over 18 years of experience in banking and investment. Before joining DSP Merrill Lynch Fund Managers in April 2006, he held senior positions in the Global Private Client and Institutional Equity Sales divisions of DSP Merrill Lynch Limited.
• Other Schemes Managed: DSP BlackRock Balanced Fund, DSP BlackRock Equity Fund and DSP BlackRock Technology.com

Scheme Details

Performance Review (As on 14th April 2009)

• DSP BlackRock Top 100 Equity Fund has limited its losses in the recent market downturn by extensive use of derivatives (13%-15%) in the portfolio
• The scheme has delivered the highest returns (18.77%) in last 5yrs when the category average stands at 14.53% during the same period

Portfolio Analysis (As on 14th April 2009)

• Oil andPetroleum, Diversified and Pharmaceutical are the preferred sectors in the portfolio presently.
• NTPC Ltd, Power Grid, Sesa Goa Ltd, GAIL and JP Associates are the new entrants in the portfolio. This is the result of increasing exposure in infrastructure sector

iTrust Observations

• DSP BlackRock Fund invests in large-cap stocks chosen from the 100 largest corporations by market capitalization. Large Cap Companies bring stability in the fund's performance over the long term period due to its competent management team and higher corporate governance.
• Investment Strategy: The fund manager has been consistently holding 13-15% of derivatives in its portfolio since last 2 years as a risk mitigation strategy. Further, from having concentrated (approx 15%) individual exposure to sectors such as banks and petroleum, the manager has now trimmed exposure to individual sectors limiting to 10%.
• These factors have resulted in good returns delivered by the fund in the bull markets and well protected the returns when markets turned bearish. Beta of 0.85 suggests that this fund is suitable for an investor with moderate risk appetite who is willing to invest for 3-5 yrs

Risk Factors

• Interest Rate Risk: The interest rate volatility in Indian markets may impact the NAV of the scheme by impacting the price of debt instruments
• Any interest rate changes in Indian market, changes in government regulations can have an adverse impact on the performance of the fund

Disclaimer

Neither the information, nor any opinion contained in this note constitutes a solicitation or offer by iTrust to buy or sell any mutual fund units. The information contained in this sheet is generic. Please consult your financial advisor for suitability of the product.
- MUTUAL FUNDS ARE SUBJECT TO MARKET RISK. PLEASE READ THE OFFER DOCUMENT CAREFULLY BEFORE INVESTING.