DSP Investment Managers on Monday said its flexi-cap fund, DSP Flexi Cap Fund, has delivered 19.1% compound annual growth rate (CAGR) since its inception on 29 April 1997.
The returns mean that ₹1 lakh invested at inception in the DSP Flexi Cap Fund would have grown to over ₹78 lakh till 31 March 2022. Compared with this a similar investment in Nifty 500 TRI would have grown to ₹31.74 lakh.
A flexi-cap fund has to invest a minimum of 65% of its assets in equity and equity-related instruments. Unlike multi-cap funds, there are no minimum thresholds for investments in large, mid- and small-cap, and the exposure can be managed dynamically.
As per the fund house, the DSP Flexi Cap Fund takes a structured approach to investing by focusing on business longevity, prudent management, and growth sustainability (BMG Framework).
The BMG framework followed by the fund includes businesses that are less capital intensive, having a high cash conversion, market share dominance, judicious capital allocation, and superior margins reflecting in higher return on equity (RoE) and growth rates of profits.
The CAGR rolling returns of DSP Flexi Cap Fund over any 10-year period has been a minimum of 6.9% and a maximum of 33.5%. While, the fund, like equities, has intermittent net asset value (NAV) fluctuations, over a decade it has always earned positive returns for patient investors. The flexi-cap fund is managed by Atul Bhole and Abhishek Ghosh.
“DSP Flexi Cap Fund was our first fund to have a disciplined investment framework and has proven itself over many market cycles. Its flexible style of choosing good businesses irrespective of market caps makes it a good choice for every investor. This impressive long-term growth has, however, been seen by only 36 investors, who invested at inception and remain invested today,” said says Kalpen Parekh, MD & CEO, DSP Investment Managers.
“We are thankful to the lakhs of investors who have invested in the fund over the last 25 years and over 20,000 distributors who have recommended the DSP Flexi Cap Fund over the same period. We take this opportunity to thank our customers, partners, and employees for their support as we embark on a new and exciting journey,” Parekh added.