What’s OFO of DSP Flexicap fund by DSP Investment Managers?

DSP Investment Managers on Monday announced an old fund offer (OFO) of its flexicap fund (erstwhile DSP Equity Fund), which was launch in 1997. Through the product, the company is looking to remind investors of a portfolio that has been through various market cycles over 24 years.

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The marketing strategy comes at a time when fund houses are establishing new fund offerings (NFOs) to address gaps in their product portfolios or to introduce a themed fund when a specific industry or subject is performing well.

“Many times, we neglect the old, even when it is good,” Kalpen Parekh, MD and CEO of DSP Investment Managers, said of the project. We are reintroducing investors to a successful flexi cap fund with a nearly two-and-a-half-decade track record through our OFO. A fund that follows simple investing rules: “Invest with competent managers in good industries and persist with them until they execute.”

The DSP Flexi Cap Fund offers a systematic approach to investing, focusing on the long-term viability of businesses, careful management, and long-term growth potential (BMG framework). The fund seeks to invest in large-cap, mid-cap, and small-cap stocks that have a high return on equity and earnings growth. The goal is to adapt to various market scenarios.

According to DSP Investment Managers, the fund’s portfolio is adequately diversified as of 30 June 2021, with 55-65 equities, 60-70 percent of which are large-caps and 30-40 percent mid- and small-caps.

Since its establishment, the fund has grown at an annualised rate of 19.3 percent, and a one-lakh investment would have risen to over 75 lakh by today.

The fund, which was founded on April 29, 1997, has a total asset under management (AUM) of 5,687 crore. The scheme’s fund managers are Atul Bhole and Abhishek Ghosh.

Banks (20%), consumer durables (9%), insurance (8%), finance (7%), and software (7%) are the top five sectors in terms of weightage in the scheme (7 percent ).

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