DSP BlackRock Equity still a Core Fund?

[life2007]

Hello!

I had started out investments in 2008 and picked up DSP BlackRock Equity - Growth as core funds since it was large cap fund then and had lot of good reviews including from value research online.

It is indeed a consistent performer and still has 5 stars with decent returns. But what worries me is that it has tilted towards midcap and now can be broadly considered as midcap fund.

I understand for a core portfolio we need couple of funds which are well diversified and large cap. This should also form 75-80% of the portfolio. I have been investing mostly in this fund along with Magnum Contra. Now with Magnum Contra out of the picture for some time, I am banking on DSP Blackrock MF Equity.

I would like to know your comments please whether this funds still holds as a good fund to form core portfolio or should I shift focus and make new investments in HDFC Top 200 or Reliance Regular Savings.

Please advise.

Regards

Jeet

 

[nikrod]

Hello!

I had started out investments in 2008 and picked up DSP BlackRock Equity - Growth as core funds since it was large cap fund then and had lot of good reviews including from value research online.

It is indeed a consistent performer and still has 5 stars with decent returns. But what worries me is that it has tilted towards midcap and now can be broadly considered as midcap fund.

I understand for a core portfolio we need couple of funds which are well diversified and large cap. This should also form 75-80% of the portfolio. I have been investing mostly in this fund along with Magnum Contra. Now with Magnum Contra out of the picture for some time, I am banking on DSP Blackrock MF Equity.

I would like to know your comments please whether this funds still holds as a good fund to form core portfolio or should I shift focus and make new investments in HDFC Top 200 or Reliance Regular Savings.

Please advise.

Regards

Jeet

Hi Jeet,

I agree with you completely. Large cap funds should form core of your portfolio and DSPBR equity though still multicap has tilted towards mid cap stocks. It is still a very good fund, but in my openion, you should add HDFC Top 200 or Reliance Regular Savings to form core of your portfolio. Continue holding DSPBR and balance out the risk by adding large caps / multicaps.

 

[drsambu123]

this monthe Value researchonline downgraded it to 4 star fund. But 4 star also ok, U closely watch the fund analysis column.Any further down grade consider switching to another funds( as mentioned above)

 

[nikrod]

this monthe Value researchonline downgraded it to 4 star fund. But 4 star also ok, U closely watch the fund analysis column.Any further down grade consider switching to another funds( as mentioned above)

You should not switch a fund just because it was downgraded to 3 stars for couple of months. Watch the ratings carefully and if funds stays on 3 stars for a year then it's probably time to exit.