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Worth a Look

Moderate volatility and an above average risk-adjusted performance make this fund a possible candidate for investors looking at some additional technology exposure. The minimum investment limit is also the lowest in the category.

DSPML Technology.com has always given an above average performance. And this performance looks even better when the risks undertaken to generate them are taken into account—the fund has one of the best Sharpe ratio in the category.

Launched in April 2000, DSPML Technology.com like other tech funds took considerable exposure to IT heavyweights like Wipro, Satyam and Infosys. But as the markets crashed in 2000, the fund lost 36.8 per cent. The fund's downward journey continued in 2001 as technology stocks got hammered further. In the rally after the September 11 crash till Budget 2002, the fund made a comeback rising 95.27 per cent, compared to 73.31 per cent by the category. The considerable exposure to stocks such as HCL Technologies, Digital Globalsoft, Infosys and Wipro helped the fund in this rally.

When the markets tumbled in 2002, DSPML Technology.com managed the fall better. In August 2002 the fund increased its exposure in mid-cap stocks and since then, it has been predominantly into mid-cap IT stocks. But the fund's recovery in the last quarter of 2002 was led by its large holdings in Infosys, Wipro and Satyam. Overall, 2002 proved a good year for DSPML Technology.com, and it was the third best performing fund.

This year, the fund's mid-cap holdings have helped it post superior returns compared to its category. For example, its considerable exposure to mid-cap holdings like e-Serve, Moser Baer and Mphasis BFL helped in the recent market rally. Prior to the IT crash in April, Infosys constituted 12.5 per cent of the fund's portfolio and Mastek was 5 per cent. Both these stocks lost heavily after their results. The fund naturally got the hit, but relatively lower holdings in these stocks led to an outperformance against the category in April 2003.

The fund unlike its peers does not generally take more than 10 per cent exposure in a single stock. DSPML Technology.com may not have topped the returns chart, but it has managed to deliver better-than-average performance. It has also had a decent run in the year to date. The lowest minimum investment limit in the category is also an additional benefit for those who want very small exposure.