VR Logo

A Consistent Player

The fund is once again targeting large-caps after spending years maintaining a mixed portfolio of mid- and large-caps. A low mid-cap exposure would further reduce the volatility of the fund, thus making it a worthy investment for long-term.

An above average performance consistently and low volatility makes it a decent choice for all sorts of investors. Maintaining an evenly balanced portfolio of large- as well as mid-cap tech stocks, DSPML Technology.com has the best risk-adjusted return (Sharpe Ratio) among peers. If you are not convinced take a look at the fund's annual returns - in each of the three full calendar years of its existence, the fund has landed in the top half of the category.

Even in the not so good equity market of 2004, DSPML Technology.com has been among the least sufferers – down 8.71 per cent vis-à-vis category average loss of 10.42 per cent in the first six months of 2004. A higher exposure to large-caps like Infosys, Bharti Televentures and Wipro has helped the fund in stemming losses. One of its top mid-cap picks, E-Serve International has in fact gained in this period thus providing some relief. Also, the fund's recent venture in media stocks like NDTV and TV Today, though marginally, has been a plus as these stocks have hardly felt the impact of the falling market.

On the strategy front, DSPML Technology.com has largely believed in buy and hold practice. For instance, the fund has been holding Infosys, Satyam, Wipro and E-Serve International for long. But the most important feature of the fund has been the diversification. At all times, the fund's portfolio has been spread over 25-30 stocks. Except for Infosys, no other stock has accounted for more than 10 per cent of the fund's total assets. This diversification helped the fund in mitigating losses when the tech stocks crashed in April 2003.

Since July 2002, DSPML Technology.com has been scouting for mid-cap stocks. And this has been the major factor boosting the fund return henceforth. A considerable exposure to mid-caps like E-Serve, Bharat Electronics and Moser Baer, whose share prices rose many times helped it post category-beating return of 67 per cent through 2003.

In June 2004, the fund's portfolio has once again turned more towards large-caps. This could be seen as a measure to contain volatility in the somewhat lackluster market. The fund has done this by reducing exposure to mid-caps like Bharti Televentures, Bharat Electronics and Moser Bear. This low mid-cap exposure would further reduce the volatility of the fund, thus making DSPML Technology.com a worthy investment for long-term. The lowest minimum investment limit in the category is also an additional benefit for those who want very small exposure.