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DSPML Opportunities Fund

Holding a flexible investment charter, DSPML Opportunities is likely to follow a nimble footed strategy. With the markets in a bear grip, investors should hold a long-term investment view

DSPML Opportunities seeks to respond to the dynamically changing economy by moving in and out of sectors in line with the prevailing trends. The charter gives the fund the leeway to shift across sectors such as life style, pharma, cyclicals and technology, while being concentrated in two or more sectors. This sets apart DSPML Opportunities from a diversified equity fund and makes it a specialty fund instead.

Launched at a time when the ICE rally had started to fizzle out, the fund took positions in technology, cyclicals and lifestyle stocks, in that order, while still holding a substantial cash position. By June 2000 the fund got fully invested by augmenting its allocation to technology stocks. While the fund has exposure to top rung technology counters such as Infosys, Satyam and SSI, it has had exposure to B group stocks such as DSQ Software and BFL Software. However, with the technology counters under a persistent battering, the fund shifted focus towards top rung cyclical stocks by late 2000. Cyclicals such as energy, diversified, construction and metals 72.31 %, with technology accounting for 16.25%.

DSPML Opportunities, with its investment spread across 2-3 sectors is likely to be less volatile than a fund committed to sectoral investments. With the fund's launch coinciding with the broad market crash in April, it has quoted below par through its tenure.

DSPML Opportunities Fund with its flexible investment charter, is likely to be a nimble footed fund, which would capture the market trend. While this trend spotting offers scope for capital gains, it is subject to considerable risks. However, with the markets on a broad downfall since its launch, investors in such fund should hold a long-term investment view.