We move DSP Midcap Fund to 'Hold'

DSP Midcap Fund has been our long-standing recommendation due to its buy-and-hold approach, steady performance, Vinit Sambre's investment style and quality orientation. However, the performance consistency has been a miss for about three years now. The fund has experienced a notable period of underperformance (versus its peers) since 2021, which has been the longest in the last decade. While the fund managed to reduce the margin of underperformance from -17 per cent in 2021 to -2 per cent in 2023, it still ranks in the third quartile. Impact on long-term performance The large underperformance in 2021 and 2022 has started to reflect on DSP Midcap Fund's long-term track record.