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Strictly for Intended Recipients Only
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* DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class
Nov 2022
| People | Processes | Performance |
DSP Equity & Bond Fund
(An open ended hybrid scheme investing predominantly in equity and equity related instruments)](https://image.slidesharecdn.com/dspequitybondfundnov2022-230726174219-d178536e/85/DSP-Equity-Bond-Fund-1-320.jpg)
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DSP Equity & Bond Fund
- 1. [Title to come] [Sub-Titleto come] Strictly for Intended Recipients Only Date * DSP India Fund is the Company incorporated in Mauritius, under which ILSF is the corresponding share class Nov 2022 | People | Processes | Performance | DSP Equity & Bond Fund (An open ended hybrid scheme investing predominantly in equity and equity related instruments)
- 2. 2 How equity &debt perform during various market phases? Large divergence in performance between equity & debt across market cycles Period Nifty 50 TRI CRISIL 10 Year Gilt Index Returns Differential Feb-08 to Mar-09 -38% 8% -46% Nov-10 to Dec-11 -21% 4% -25% Mar-15 to Feb-16 -21% 7% -28% Jan-20 to Mar-20 -38% 4% -42% Period Nifty 50 TRI CRISIL 10 Year Gilt Index Returns Differential Jan-04 to Jan-08 30% 3% 27% Apr-09 to Oct-10 55% 3% 53% Jan-12 to Feb-15 24% 8% 16% Mar-16 to Jan-18 26% 6% 20% Apr 20 to Mar-21 73% 4% 69% Bull Phase Bear Phase Calendar Year Source: AMFI Website. Data as on 30 Nov 2022. Indices are managed and used for illustrative purposes only and are not intended to be indicative of any fund’s performance. It is not possible to invest directly in an index. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. Calendar year Nifty 50 TRI CRISIL 10 Year Gilt Index Return Differential 2004 13% -5% 18% 2005 39% 4% 35% 2006 42% 5% 37% 2007 57% 6% 50% 2008 -51% 28% -79% 2009 78% -9% 86% 2010 19% 3% 16% 2011 -24% 2% -26% 2012 29% 11% 19% 2013 8% -1% 9% 2014 33% 14% 19% 2015 -3% 7% -10% 2016 4% 15% -11% 2017 30% 0% 30% 2018 5% 6% -1% 2019 13% 10% 3% 2020 16% 9% 7% 2021 26% 1% 24% 2022 10% 0% 9%
- 3. 3 Performance outcomes fromdifferent combination of equity & debt Mixing debt & equity (hybrid funds) has the potential to provide a smoother investor experience Source: AMFI website. Indices are managed and used for illustrative purposes only and are not intended to be indicative of any fund’s performance. It is not possible to invest directly in an index. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. Data as on 30 Nov 2022. The figure mentioned for performance of the index should not construe as returns/performance of the Scheme. It is not possible to invest directly in an index. 0 2000 4000 6000 8000 10000 12000 14000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Value of Rs.1,000 invested Nifty 50 TRI CRISIL Hybrid 35+65 - Aggressive Index CRISIL Hybrid 50+50 - Moderate Index CRISIL Hybrid 85+15 - Conservative Index Nifty 50 TRI CRISIL Hybrid 35+65 - Aggressive Index CRISIL Hybrid 50+50 - Moderate Index CRISIL Hybrid 85+15 - Conservative Index CAGR 14.3% 12.3% 11.2% 8.0% Standard Deviation 22.4% 14.4% 11.2% 4.2% Risk per unit of risk 0.64 0.86 1.00 1.90
- 4. 4 Hybrid Funds canreduce drawdowns during investment journey Lower drawdowns may give investors confidence to stay invested in order to capture upsides Source: AMFI website Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. Data as on 30 Nov 2022. The figure mentioned for performance of the index should not construe as returns/performance of the Scheme. It is not possible to invest directly in an index. -60% -50% -40% -30% -20% -10% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Yearly drawdowns Nifty 50 TRI CRISIL Hybrid 35+65 - Aggressive Index
- 5. 5 What is DSPEquity & Bond Fund? AGGRESSIVE HYBRID FUND INVESTS IN A MIX OF EQUITY & DEBT Equities for capital appreciation Debt for income generation AUTO REBALANCING Portfolio rebalanced by the manager to maintain ~ 65 - 35 equity to debt allocation. INVESTMENT FRAMEWORK Equity: Seeks long term growth opportunities across market caps Debt: Highly rated debt instruments with short term maturity profile TAX EFFICIENT Min 65% investment in equity makes the fund eligible for equity taxation Rebalancing between equity and debt without tax incidence Mix of equity & debt aims to provides capital appreciation with volatility reduction Source: Internal. The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and currently followed by the scheme and the same may change in future depending on market conditions and other factors.
- 6. 6 Why invest inDSP Equity & Bond Fund? CORE PORTFOLIO ALLOCATION With long term track record of existence since 1999, the fund has gone through various market cycles Combines capital appreciation potential with income generation and volatility reduction Equity + Debt mix helps potentially smoothen investment experience May be suitable for both new and experienced investors to seek growth across market cycles LONG TERM INVESTMENT TRACK RECORD* ONE STOP SOLUTION FOR INVESTORS SUITABLE FOR A LARGE VARIETY OF INVESTORS Suitable for the core long term portfolio allocation in an investment portfolio * Inception date of DSP Equity & Bond Fund is May 27, 1999
- 7. Business Management Growth 7 Equity & DebtInvestment Framework ASSET ALLOCATION REVIEW & REBALANCING Robust investment framework followed for equity and debt investment Debt ~ 25-35% Equity ~ 65-75% Equity Investment Framework Debt Investment Framework Minimize interest rate and credit risk Holds high quality short term debt instruments Active portfolio rebalancing: ✓ When equity allocation goes below 65% ✓ When debt allocation goes above 35% => Buy low Sell high built into product SECURITY SELECTION Source: Internal. The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and currently followed by the scheme and the same may change in future depending on market conditions and other factors.
- 8. 8 Fund Managers EQUITY &EQUITY RELATED SECURITIES INCL. DERIVATIVES (65% – 75%) Seek Capital appreciation plus Income DEBT & MONEY MARKET (MM) INSTRUMENTS (25%-35%) Seek Income Vikram Chopra - Portfolio Manager for debt & money market allocation (Managing since Jul 2016) • 17 year experience in fund management • Masters in Mgmt. Studies (PGDM) and Bachelors in Commerce (Hons) DESCRIPTION, PORTFOLIO MANAGERS Atul Bhole: Fund Manager for equity allocation (Managing since Jun 2016) • Over 15 year experience in fund management and equity research • Masters in Management Studies from JBIMS and has cleared his CA exams. Dhaval Gada: Co-Fund Manager for equity allocation (Managing since Sep 2022) • Over 13 year experience in equity research • PGDM- Finance from Welingkar Institute of Management
- 9. 9 How DSP Equity& Bond Fund fared over a period? Asset allocation & Stock selection can lead to alpha generation & volatility reduction Source: Internal, AMFI Website. Performance shown in the above graph & table is of DSP Equity & Bond Fund for Growth Option and Regular Plan. Scheme/Fund Benchmark: CRISIL Hybrid 35+65 - Aggressive Index. Refer Annexure for performance in SEBI prescribed format and of other schemes managed by Fund Managers. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. Data as on 30 Nov 2022. The figure mentioned for performance of the index should not construe as returns/performance of the Scheme. It is not possible to invest directly in an index. Data since 28 Mar 2002 as benchmark values are available only since that date.. 0 5000 10000 15000 20000 25000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Value of Rs.1,000 invested DSP Equity & Bond Fund - Growth Nifty 50 TRI CRISIL Hybrid 35+65 - Aggressive Index CRISIL 10 Year Gilt Index DSP Equity & Bond Fund - Growth Nifty 50 TRI CRISIL Hybrid 35+65 - Aggressive Index CRISIL 10 Year Gilt Index CAGR 15.8% 16.2% 14.0% 6.3% Standard Deviation 14.0% 22.1% 14.2% 5.9% Risk per unit of risk 1.13 0.73 0.99 1.07
- 10. 10 Performance Scorecard DSP Equity& Bond Fund aims to provide better risk adjusted returns profile across periods AVERAGE ROLLING RETURNS RETURN PER UNIT OF RISK Source: MFIE; Rolling Returns of DSP Equity & Bond Fund are shown as on Nov 30, 2022 for Growth Option and Regular Plan. Rolling frequency is daily. Standard Deviation of DSP Equity & Bond Fund and CRISIL Hybrid 35+65 - Aggressive Index is calculated on the basis of daily returns. Benchmark values are available only since March 28, 2002 hence since inception return for benchmark is not available. Refer Annexure for scheme performance in SEBI prescribed format and of other schemes managed by same Fund Managers. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. The figure mentioned for performance of the index should not construe as returns/performance of the Scheme. It is not possible to invest directly in an index. 18.7% 15.7% 14.5% 13.2% 16.0% 13.8% 12.9% 12.1% 1 yr RR 3 yr RR 5 yr RR 10 yr RR DSP Equity & Bond Fund - Growth CRISIL Hybrid 35+65 - Aggressive Index 1.33 1.12 1.03 0.94 1.13 0.97 0.91 0.85 1 yr RR 3 yr RR 5 yr RR 10 yr RR DSP Equity & Bond Fund - Growth CRISIL Hybrid 35+65 - Aggressive Index
- 11. 11 Equity Portfolio details(~74% weight) Flexible equity allocation in terms of market capitalisation Source: MFIE; Portfolio data as on 30 Nov 2022. The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer. Large-caps are defined as top 100 stocks on market capitalization, mid-caps as 101-250 stocks, small-caps 251 stock onwards. TOP 10 STOCKS MARKET CAP ALLOCATION TOP 5 HOLDING Stock Name Sector % Weight HDFC Bank Ltd. Financial Services 7.2 ICICI Bank Ltd. Financial Services 5.7 Bajaj Finance Ltd. Financial Services 4.2 Infosys Ltd. Information Technology 3.0 Axis Bank Ltd. Financial Services 2.8 Avenue Supermarts Ltd. Consumer Discretionary 2.8 Maruti Suzuki India Ltd. Consumer Discretionary 2.6 HCL Technologies Ltd. Information Technology 2.0 APL Apollo Tubes Ltd. Industrials 1.7 Bharat Electronics Ltd. Industrials 1.5 Large cap, 46% Mid cap, 21% Small cap, 7% Stock Name % Weight Financial Services 27.7 Consumer Discretionary 15.5 Industrials 9.9 Information Technology 7.4 Commodities 4.7 Healthcare 4.1 Fast Moving Consumer Goods 3.6 Energy 1.4
- 12. 12 Debt Portfolio details(~26% weight) DSP Equity & Bond Fund has invested in highly rated instruments Source: MFIE; Portfolio data as on 30 Nov 2022. The sector(s)/stock(s)/issuer(s) mentioned in this note do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer. RATING PROFILE INSTRUMENT ALLOCATION TOP 5 HOLDING QUANTITATIVE INFORMATION Particular Values Portfolio YTM (Annualised) 7.24% Modified Duration (yrs) 1.92 Average Maturity (yrs) 2.25 Government Securities, 13.1% Non Convertible Debentures (NCDs), 7.2% Certificate of Deposits, 4.0% Cash & Cash Equivalent, 1.3% Security Name % Weight 7.5900% GOI GSE 11012026 3.7% 7.3800% GOI GSE 20062027 3.2% IRFC 1.7% SIDBI 1.6% NABARD 1.6% SOV, 13.1% AAA, 6.5% AA+, 0.2% AA, 0.5% A1+, 4.0% CASH/CASH EQU, 1.3%
- 13. 13 Annexure – Performancein SEBI prescribed format CAGR Current Value of Rs.10,000 invested CAGR Current Value of Rs.10,000 invested CAGR Current Value of Rs.10,000 invested 1 Year 0.70% ₹ 10,070 8.29% ₹ 10,829 11.93% ₹ 11,193 3 years 13.30% ₹ 14,555 14.88% ₹ 15,171 17.22% ₹ 16,123 5 Years 9.96% ₹ 16,083 11.88% ₹ 17,531 14.32% ₹ 19,529 since Inception 14.38% ₹ 236,126 NA NA 14.39% ₹ 236,245 NAV / Index Value ₹ 236.13 ₹ 15,102 ₹ 27,276 DSP Equity & Bond Fund CRISIL Hybrid 35+65 - Aggressive Index^ NIFTY 50 TRI # Date of allotment: May 27, 1999. 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 Regular Plan & Growth option. Since inception returns have been calculated from the date of allotment till November 30, 2022 Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments ^ Fund Benchmark # Standard Benchmark Fund Managers 1) Atul Bhole (Equity)– Managing since Jun 2016 2) Dhaval Gada (Equity) - Managing since Sep 2022 3) Vikram Chopra (Fixed Income) – Managing since Jul 2016
- 14. 14 Annexure – Performanceof funds managed by same fund manager 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 regular plan growth option. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments Data as on November 30, 2022 Sr. No. Period Scheme return (%) Benchmark return (%) Scheme return (%) Benchmark return (%) Scheme return (%) Benchmark return (%) 1 DSP Flexi Cap Fund -0.17 10.2 15.89 18.83 11.67 13.03 2 DSP Dynamic Asset Allocation Fund 1.79 6.84 7.78 12.99 7.18 10.85 3 DSP Equity & Bond Fund 0.7 8.29 13.3 14.88 9.96 11.88 1 Year 3 Years 5 Years ALL FUNDS MANAGED BY ATUL BHOLE & DHAVAL GADA Sr. No. Period Scheme return (%) Benchmark return (%) Scheme return (%) Benchmark return (%) Scheme return (%) Benchmark return (%) 1 DSP Nifty SDL Plus G-Sec Jun 2028 30:70 Index Fund NA NA NA NA NA NA 2 DSP Regular Savings Fund 4.44 3.36 6.88 8.12 4.41 8.05 3 DSP 10Y G-Sec Fund -0.55 -0.21 4.05 3.47 5.49 5.1 4 DSP Strategic Bond Fund 0.99 2.85 5.29 7.81 6.24 7.33 5 DSP Banking & PSU Debt Fund 2.91 2.84 5.49 5.74 6.51 6.37 6 DSP Equity & Bond Fund 0.7 8.29 13.3 14.88 9.96 11.88 7 DSP Government Securities Fund 2.32 1.26 6.16 5.52 7.32 6.52 1 Year 3 Years 5 Years ALL FUNDS MANAGED BY VIKRAM CHOPRA
- 15. 15 Disclaimer & ProductLabeling Details This document is for information purposes only. In this material DSP Investment Managers Private Limited (the AMC) has used information that is publicly available, including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. The statements contained herein may include statements of future expectations and other forward looking statements that are based on prevailing market conditions / various other factors and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. While utmost care has been exercised while preparing this document, the AMC nor any person connected does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient(s) before acting on any information herein should make his/their own investigation and seek appropriate professional advice. There is no assurance of any returns/capital protection/capital guarantee to the investors in any schemes of DSP Mutual Fund (‘Fund’). The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Past performance may or may not sustain in future and should not be used as a basis for comparison with other investments. The sector(s)/stock(s)/issuer(s) mentioned herein do not constitute any research report/recommendation of the same and the scheme/ Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). The strategy / investment approach / framework mentioned herein is currently followed by the scheme and the same may change in future depending on market conditions and other factors. All opinions, figures, charts/graphs and data included in this document are as on 30 Nov 2022 (unless otherwise mentioned) and are subject to change without notice. For scheme specific risk factors, Investment strategy & objective, asset allocation and more details, please read the Scheme Information Document, Statement of Additional Information and Key Information Memorandum of scheme available on ISC of AMC and also available on www.dspim.com. For Index disclaimer click here Large-caps are defined as top 100 stocks on market capitalization, mid-caps as 101-250 , small-caps as 251 and above. The strategy mentioned has been currently followed by the Scheme and the same may change in future depending on market conditions and other factors Mutual Fund investments are subject to market risks, read all scheme related documents carefully. *Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them. Scheme Product Suitability Riskometer DSP Equity & Bond Fund Benchmark – CRISIL Hybrid 35+65 Aggressive Index DSP Equity & Bond Fund (An open ended hybrid scheme investing predominantly in equity and equity related instruments) This Open ended aggressive hybrid scheme is suitable for investors who are seeking* Capital growth and income over a long- term investment horizon Investment primarily in equity/equity- related securities, with balance exposure in money market and debt securities
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