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DSP Small Cap Fund

DSP Small Cap Fund

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Benchmark: S&P BSE 250 Small Cap TRI info icon

7 lakh people have invested in this fund

View performance details

Return:

This fund

18.00%

S&P BSE 250 Small Cap TRI

14.30%

NIFTY 50 TRI

14.15%

Invested

Earning

This fund

18.00%

S&P BSE 250 Small Cap TRI

14.30%

NIFTY 50 TRI

14.15%

team 7 lakh people have invested in this fund as of

This is an Equity Diversified, Small cap fund with S&P BSE 250 Small Cap TRI as its benchmark. The risk level for this fund is categorized as Very High Risk.

Total AUM

13,858.7 crores as of Jan 31, 2024

Age of Fund

11 years 1 month since Jan 01, 2013

Expense Ratio

0.9% as of Feb 28, 2024

Exit Load

1% upto 12 Months

Ideal holding period

10 Years+

Holdings

as of Jan 31, 2024

Cyient Limited

4.51%

eClerx Services Limited

3.03%

Ratnamani Metals & Tubes Limited

2.70%

Suprajit Engineering Limited

2.64%

IPCA Laboratories Limited

2.63%

Triveni Engineering & Industries Limited

2.47%

Voltamp Transformers Limited

2.29%

Small Cap

92.00%

Mid Cap

7.40%

Small cap

0.10%

Industrial Products

18.00%

Consumer Durables

16.60%

Auto Components

6.20%

Chemicals & Petrochemicals

6.20%

Pharmaceuticals & Biotechnology

5.60%

Rolling Returns

Bars show distribution of returns in given range for selected time period.

View performance details

Things to know before you invest

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What is in DSP Small Cap Fund?

  1. DSP Small Cap Fund invests in some of the smallest, fastest growing & innovative Indian companies.
  2. It considers companies with strong business models in high growth sectors and efficient management teams focused on utilizing resources wisely to eventually unlock high-growth potential.
  3. Some of these companies could be just starting out and still in the early stages of proving their business plans- generally under-owned, under-researched & under-valued.
  1. Offers the potential to 'earn big' returns by utilizing this high-risk, high-return strategy.
  2. Can help you beat the impact of rising prices over the long-term.
  3. Can be a suitable choice for wealth accumulation using long-term SIP.
  1. Consider this fund if you
    • Are LONG-TERM investors & willing to hold fund for atleast 10 years.
    • SIP investors who are disciplined to continue SIP for longer tenure.
    • Are an experienced investor with a well-set core portfolio & know what you're doing.
    • Are looking to tactically allocate 10-15% of your overall portfolio to very high-risk opportunities.
    • Understand that there is very high risk involved in this category of funds in the quest for high returns.
    • Have the patience & mental resilience to remain invested for a decade or more.
    • Recognize market falls as good opportunities to invest more.
  1. NAV of the fund is likely to fluctuate a lot more than other diversified equity funds as smaller companies are more prone to economic shocks.
  2. Please do not use recent or past returns as the only criteria to evaluate this fund.
  3. Small Cap Fund carries Very High Risk.
  4. In the past, there has been an occasion where this fund's NAV fell by 60% in 1 year.
  5. Over any 3 year rolling time period, this fund gave negative returns 5% of the times.

Fund managers:

Vinit Sambre

Vinit Sambre

Total work experience of 25 years. Managing this fund since June 2010 as a Co-Fund Manager.
Total work experience of 25 years. Managing this fund since June 2010 as a Co-Fund Manager.

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Resham Jain

Resham Jain

Total work experience of 18 years. Managing this fund since March 2018 as a Co-Fund Manager for Equity portion
Total work experience of 18 years. Managing this fund since March 2018 as a Co-Fund Manager for Equity portion

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Abhishek Ghosh

Abhishek Ghosh

Total work experience of 16 years. Managing this fund since March 2013 as a Co-Fund Manager.
Total work experience of 16 years. Managing this fund since March 2013 as a Co-Fund Manager.

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Jay Kothari

Jay Kothari

Total work experience of 18 years. Managing this fund since March 2013 as a Co-Fund Manager.
Total work experience of 18 years. Managing this fund since March 2013 as a Co-Fund Manager.

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Portfolio

Prescribed asset allocation: 65% - 100% Equity & equity related instruments of small cap companies , 0% - 35% Other equity & equity related instruments which are in the top 250 stocks by market capitalization , 0% - 35% *Debt and Money Market Securities , 0% - 10% Units of REITs & InvITs
*Debt Instruments may include securitised debts up to 10% of the net assets of the Scheme.

Current Allocation

as of Jan 31, 2024

Top holdings

Cyient Limited

4.51%

eClerx Services Limited

3.03%

Ratnamani Metals & Tubes Limited

2.70%

Suprajit Engineering Limited

2.64%

IPCA Laboratories Limited

2.63%

Allocation by Market Cap

Small Cap

92.00%

Mid Cap

7.40%

Small cap

0.10%

Top Sectors

Industrial Products

16.91%

Consumer Durables

15.60%

Chemicals & Petrochemicals

5.86%

Auto Components

5.84%

Pharmaceuticals & Biotechnology

5.29%

Top holdings

TREPS / Reverse Repo Investments / Corporate Debt Repo

5.84%

Cash & cash equivalents

-0.00%

Credit rating profile

Cash & Equivalent

99.30%

Instrument break-up

TREPS

100.00%


Indicators

Portfolio turnover ratio

0.24 last 12 months

Standard Deviation

15.87 %

Sharpe Ratio

1.63

Beta

0.85

R-Squared

92.16 %

Compare Performance

Performance highlights over last

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Min CAGR:
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  • Historical Returnsas of with investment of10,000

This fund S&P BSE 250 Small Cap TRI ^ NIFTY 50 TRI #
CAGR Current Value CAGR Current Value CAGR Current Value

Income distribution Cum Capital Withdrawal (IDCW) Distributed

Record Date IDCW per unit NAV Before NAV After

Chart type

Invested as

Invested Amount

Invested since

This fund

Vs

S&P BSE 250 Small Cap

NIFTY 50 TRI

Gold

PPF

Funds Annual returns Current Value Absolute Growth

Chart type:

Invested as

Invested Amount

Invested period

Funds Minimum Median Maximum % times -ve returns % times returns > 7%

Date of allotment: Jan 01, 2013.

Period for which fund's performance has been provided is computed based on last day of the month-end preceding the date of advertisement

Different plans shall have a different expense structure. The performance details provided herein are of Direct Plan.

Since inception returns have been calculated from the date of allotment till June 30, 2021

Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments

Rolling returns have been calculated based on returns from regular plan growth option.

^ Fund Benchmark # Standard Benchmark

Fund Details

Fund Details

Investment Objective

The primary investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small cap companies. From time to time, the fund manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction.
There is no assurance that the investment objective of the Scheme will be realized

Fund Type

Equity – Diversified
Small cap Fund

An open ended equity scheme predominantly investing in small cap stocks

Riskometer

Level of Risk in the fund

View details

Minimum Investment

Rs.  100 Lumpsum
Rs.  100 SIP– 12 instalments
Rs.  100 Minimum Additional Purchase

FAQs

FAQs

A small cap fund is a mutual fund that invests in stocks of companies that are ranked 251 and onwards by market capitalisation in India. A small-cap fund can potentially drive relatively higher returns for your portfolio if invested long-term, provided you have the appetite to tide over the possible short-term volatility. It can help to diversify your portfolio by complementing other equity and debt mutual fund investments.

A key characteristic of a small-cap mutual fund is its volatility or sensitivity to market conditions. Over short or medium terms, small-cap funds may carry this risk of fluctuation in returns. Having said that, in the long run, they might have the potential of helping you achieve your long-term life goals like retirement or your child's higher education.

If you have a high-risk appetite, it is only then recommended to invest a portion of your portfolio in small-cap funds Of course, you will need to be patient with the market's ups and downs and hold on to your investment for the long term.

A small-cap fund can help you diversify the risk and returns of a portfolio. While they're more likely to be volatile in the short term than mid-caps or large caps, they may likely see potentially higher returns in certain market conditions when held for the long term.

A small cap fund lets you capture a company's growth journey from it being relatively lesser known in the market until it enters the top 250 stocks in the index basis market capitalisation.

Small cap funds can potentially enhance your portfolio returns compared to large cap funds, which are proven to provide moderate returns (subjected to market conditions). This is because large-cap funds are invested in companies that are meant to be more stable in nature as they are already established. With small-cap companies, on the other hand, the returns have more wriggle room given the higher growth potential.

Anyone can invest in a small-cap mutual fund provided they are looking for long-term capital growth and appreciation in their investment's value and has the risk appetite for it.

Over the short or medium term, small-cap funds may experience market volatility. The funds invested into small-cap funds should be treated as money required for a goal over 10 years.

Finally, investors who have low-risk appetites may not enjoy the experience of market volatility that accompanies a small-cap fund on its path to potential growth. Alternatively, investors like this can take a holistic look at their portfolio value and/or invest only a small part of it in small-cap mutual funds . We advise due diligence before making a decision to invest in small-cap funds.

While investors look at absolute returns, historical returns, rolling returns, and so on, an ideal approach is to pick up a small-cap mutual fund considering the fund manager's experience and his/her philosophy and remain invested in the fund for a long time.

It is recommended to invest in DSP Small Cap Fund with a SIP or systematic investment plan and for a longer period of time. Small-cap funds can be sensitive to market conditions over short-term periods. However, they have the potential to give higher returns along with higher risk as well over the long term. The benefit of a SIP is that it helps in averaging your cost of purchase across the market's ups and downs over time, i.e. rupee cost averaging.

Having said that, if you have the expertise to be able to time the market, a lump sum investment can be considered as well. While you can invest in DSP Small Cap Fund with a lump sum, it is important to remember the long-term mindset required to harvest a small-cap fund's returns.

So, first things first, retirement is typically a phase of life when you'd like to minimise the surprises. Historic small cap fund returns show that they can benefit you in the long term. However, this comes tied in with the market sensitivity risk inherent to small-cap mutual fund. Also, when you are retired, building long-term wealth may or may not be your goal; instead, it should be focused on the conservation of accumulated wealth so far for a steady income thereon.

If you have the appetite and a goal for which you'd like to continue investing in DSP Small Cap Fund, you may choose to do so with a smaller percentage of your portfolio and through the SIP mode of investment. For example, an investor may choose to reduce their small-cap fund SIP from 10% of their investable income to 5%. However, someone with a higher risk appetite may continue to invest in small cap funds as they have in the past.

The thumb rule, and not just for small-cap fund/DSP Small Cap Fund , is that your returns from your mutual fund are not taxed if you continue to hold on to them.

Short-Term Capital Gains (STCG) are gains made from selling your small-cap fund/DSP Small Cap Fund units before 12 months from the date of purchase.

Whereas, Long Term Capital Gains (LTCG) are gains made from selling your small-cap fund/DSP Small Cap Fund units after 12 months from the date of purchase.

Here's how they are taxed:
Applicable tax as per the Income Tax Act, 1961
Short-term gain (< 12 months) Long-term gain (>12 months)
15% No tax till Rs 1,00,000.10% above 1,00,000

Historic small-cap fund investment returns are typically higher when evaluated over long-term periods. If you invest for the long term, typically around 7-10 years, the possibility of your small-cap fund/DSP Small Cap Fund giving you relatively higher returns compared to a large or mid-cap fund can be potentially higher. However, the long-term mindset is critical as stocks in this asset category are volatile and sensitive to market conditions over the short term.

A premature or medium-term withdrawal of funds can have an investor miss the period of potential growth that is possible in a small-cap fund . While past returns are not indicative of a small-cap fund's/DSP Small Cap Fund's future performance and returns, one can see that returns over longer terms may potentially hover above the anchor of 15% (however, it's not guaranteed and is subjected to fluctuation due to market conditions at any point of time). A SIP and a long-term mindset can be catalysts for an investment to give you such a return.

Any small-cap fund is likely to fluctuate across market conditions. DSP Small Cap Fund, too, can be volatile when considered over a short period, like 5 years or less. However, if held for the long term, the fund may have the potential to outperform subjected to market conditions.

For a better understanding of a fund's performance across market conditions, you can look at the standard deviation of the fund, which is a measure of the volatility of a mutual fund scheme. Having said the above, as per the risk-o-meter, small-cap funds do fall under the " very high risk " category. Hence, we recommend that you take into account your risk appetite before investing.

For Scheme type, product labelling, Riskometer and other details and disclaimers of DSP Small Cap Fund , kindly scroll above.

team 7 lakh peoplehave invested in this fund as of