Things to Know About DSP Blackrock Micro Cap Fund

Among a large number of schemes available, DSP BlackRock Micro Cap Fund holds a remarkable position. The reason being is that it is the ‘First’ rank holder in the Small & Mid Cap category and holds a Five-Star rating. The scheme has been an outperformer in its category for a long time, and the current investors of this plan are making huge profits at present.

The scheme is a small & mid-cap fund which has made major investments in the stocks and shares of small- and mid-cap companies and tend to provide high growth opportunities to the investors. The primary objective of the scheme is to generate a long-term appreciation of capital from a portfolio which consists of equity and equity-related securities of the companies which are not part of the top-300 companies as per market capitalisation. From time to time, the fund manager－Mr. Vinit Sambre also seeks participation in other equity and equity-related instruments in order to achieve optimal portfolio construction.

Being an open-ended scheme, the investors gain the benefit of redeeming the funds as and when required without any exit load or extra cost. It is a growth-oriented plan which is offering tremendous growth opportunities to the investors and helping them make high profits on their capital in order to accomplish their financial goals. The scheme is a consistent performer since its inception and has offered 19.07% returns until now. The performance of DSPBR Micro Cap can be further evaluated with the past years’ returns. The absolute profits of the scheme reached up to 99.7% in the year 2014. Moreover, the three- and five-year returns on the scheme are 42.00 and 29.70 percent respectively.

To get some more knowledge about this scheme, we must take a look over the portfolio concentration of DSP BlackRock Micro Cap Fund which primarily consists of equity investments. The 91.22% of the funds of the scheme have been invested in the equity and equity-related instruments. Moreover, the remaining 8.78% has been parked in the money market instruments in order to gain regular income. The fund allocation graph depicts that majority of the capital has been parked in the chemicals, textiles, construction, financial, healthcare, and engineering sectors. These all are among the high-yielding industries which enhance the capital worth of the investors in a consistent manner.

Furthermore, the holdings of the scheme involve small-cap companies which are extremely capable of growing money into wealth. Though small in size these entities endeavour to provide highest possible returns to the investors and will enhance the capital worth of the investors. The top-five holdings include Sharda Cropchem, SRF, Atul, KPR Mills, Repco Home Finance Ltd. These corporates are well managed and tend to deliver greater profits to the investors.

All the current investors are gaining high yields on their invested capital and making a high income. You can analyse the scheme’s NAV and performance on MySIPonline, which is an online portal for mutual fund investments. It will help you in opting for a suitable investment plan for your portfolio and will commemorate the the fact that DSP Blackrock Micro cap Fund is worth making investments in.