This document provides an overview of the DSP Top 100 Equity Fund large cap fund. It discusses the fund manager's core beliefs of valuing stocks intrinsically and recognizing uncertainty. It highlights why equity provides higher returns than inflation over the long run. The fund focuses on large caps for their lower volatility and sector leaders. Though most active funds underperform, this fund maintains a high active share and concentrated portfolio. The portfolio has conservative valuations and uses factor models for screening.

1. DSP Top 100 Equity Fund
Large Cap Fund- An open ended equity scheme
predominantly investing in large cap stocks
April 2023

2. 2
Core Beliefs of Fund Manager
Valuations Matter
Zeroth Law Of Investing :To make money consistently, without being lucky, you
have to buy an asset for less than its intrinsic worth
Nobody Knows
Calculating intrinsic worth accurately is difficult. The world is viciously uncertain
& often disappoints consensus. Forecasting is futile.
Structure Beats Activity
Hence the only intelligent way to operate is to consistently buy low implied
expectations. Buy at a point from where most surprises are positive.

3. 3
Why Equity?
0%
5%
10%
15%
20%
25%
FY 2012 FY 2014 FY 2016 FY 2018 FY 2020 FY 2022
(CII) Cost Inflation Index S&P BSE 100 TRI Index
• S&P BSE 100 TRI Index has delivered higher returns than inflation over most 5 year rolling periods
Source: Government of India, Bloomberg, Internal. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other
investments. There is no assurance of any returns/capital protection/capital guarantee to the investors in the Scheme. These figures pertain to performance of the index/Model and do
not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
5 Year Rolling Returns

4. 4
Why Equity?
• Median 5 year rolling return for S&P BSE 100 TRI Index is 13.2%
Source: Internal. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. There is no assurance
of any returns/capital protection/capital guarantee to the investors in the Scheme. These figures pertain to performance of the index/Model and do not in any manner indicate the
returns/performance of the Scheme. It is not possible to invest directly in an index.

5.  We think of Equity in India as a 12% -15% return asset on average. Actual returns could be higher or lower, but this
range is a rational “return expectation”.
 Since 1990 India’s GDP has grown at 5.8% in real terms with average inflation of 7%. This has resulted in a Nominal
GDP growth of 12.8% (Source: CMIE)
 Corporate profits for large companies in India and their market values in turn, track Nominal GDP broadly.
5
Why Equity?

6. 6
Why Large Cap Equity?
LARGE CAPs
Low volatility can help
limit drawdown
compared to
small/mid-caps
Large cap universe
(Top 100 stocks)
usually have leaders
from various sectors
with high corporate
governance standard
Large cap stocks are
well-researched &
have seen multiple
cycles of upturns &
downturns
LESS VOLATILE
SECTOR LEADERS
WELL RESEARCHED
DSP Top 100 Equity Fund invests > 80% of portfolio in large cap companies
Large-caps are defined as top 100 stocks on market capitalization, mid-caps as 101-250 , small-caps as 251 and above.

7. 7
Active Vs. Passive
93% of Large Cap Active Funds have not beaten their benchmark over the last 5 years.
Source: S&P SPIVA Report, As on Dec-2022. Past performance may or may not be sustained in future and should not be used as a basis for comparison
with other investments. There is no assurance of any returns/capital protection/capital guarantee to the investors in the Scheme.

8. 8
Why Have Active Funds Underperformed?
 Many funds in this category underperform due to a low Active Share, usually ranging from 35% to 55%.
 Active Share measures the extent to which a portfolio differs from its benchmark. To get a result that is different from
the benchmark – you must hold a portfolio that is different.
 ‘Correct’ deviation from the benchmark results in outperformance, while ‘wrong’ deviation from the benchmark results in
underperformance.
 A higher Active Share increases the range of potential outcomes (both positive and negative) and may result in
increased volatility.
 All funds (active/passive) also face the constant headwinds of costs and tracking error. Active funds have the
possibility of recovering this with better portfolio performance.

9. 9
Why Fund Managers Prefer Running Low Active Share?
 100% of outperforming funds have experienced a drawdown relative to their style and median peer benchmarks over
one, three, and five year evaluation periods
 80% of outperforming funds have at least one five-year period where they are in the bottom quartile.
 89% of executives do not tolerate underperformance for more than two years before seeking a replacement.
Source: Vanguard Study, Published in Oct-2020
Investors want smooth alpha (outperformance over benchmark): This we believe is the genesis of most challenges faced
by active funds. Smooth alpha is a myth.
We prefer a lumpy 15% return to a smooth 12% return.
– Warren Buffett
Investors who’d rather have the reverse, should ask themselves whether their aversion to volatility is mostly financial or mostly emotional.
– Howard Marks

10. 10
We Run A Relatively Concentrated High Active Share Portfolio
Source: FactSet, Internal
DSP Top 100 Equity Fund runs one of the highest active share/lowest number of holdings in the category.
59.7
63.3
61.7
67.1
64.2
62.6
63.8
62.3
60.8
31
27 28 28
34 35 34 33 32
0
5
10
15
20
25
30
35
40
54.0
56.0
58.0
60.0
62.0
64.0
66.0
68.0
Active Share (including Cash) % Number of Holdings

11. 11
Our Deviation With Respect To Benchmark Could Be High
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
Month Alpha (Deviation With Respect To Benchmark)
 The return deviation for DSP Top 100 Equity Fund with respect to S&P BSE 100 TRI could be high on monthly or
quarterly basis.
 Our endeavour is to beat the benchmark over full cycle (typically 5 to 7 years). We most certainty wont do it every
month or even every year.
Source: Bloomberg, Internal. As on 31-Mar-2023. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly.

12. 12
Large Cap Universe
 80% of the weight in the fund must come from Top 100 Large Cap
stocks only
 This simplifies approach to some extent. We own everything in green.
We might own stocks marked in yellow in case of minor changes in
business, valuations or certain catalysts.
 For everything else in the Large Cap universe, the threshold for
inclusion, either because of the nature of the business, the Fund
Manager’s understanding of the business or the valuations need to
change significantly to be included in the consideration set.
 These buckets are reviewed periodically.
As on 31-Mar-2023. The sector(s)/stock(s)/issuer(s) mentioned in this document 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(s).

13. 13
Sectoral Positioning
Source: Bloomberg, Internal
As on 31-Mar-2023. The sector(s)/stock(s)/issuer(s) mentioned in this document 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(s).
OW/UW: Overweight/Underweight. Positive number means the weigh tin the fund is higher than the weigh for the sector in the benchmark.

14. 14
Portfolio Parameters
Portfolio Price To Earnings & ROE (%) (Forward)
Source: Bloomberg, Internal
 Portfolio PE (Price To Earnings), or any other aggregative valuation metric is not a target but an outcome of the bottom-
up approach
28.0 27.4
28.4
25.7 25.3
26.5
25.5 25.1
23.0 23.1 23.7
21.2
22.1 21.8 21.3 19.7 21.6
22.6
20.1 19.5
17.7 17.0
16.6 15.6
15.1
19.3 19.2 19.0 19.1 18.8 18.5
19.2 18.7 18.8 19.0 19.1 19.4 18.9 18.7 18.2 18.7 18.8 18.7 18.8 18.9 18.9
18.2 18.5 17.9 18.0
10.0
15.0
20.0
25.0
30.0
35.0
Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23
PE Forward ROE Forward

15. 15
Conservative Portfolio Valuations
Source: Bloomberg, As on 31-March-2023. The sector(s)/stock(s)/issuer(s) mentioned in this document 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(s).
 The weighted average portfolio is trading at 0.3 Standard Deviations below last 10 year averages. This is just one of the ways to look at
valuation. In some cases the business trajectory is significantly different vs last decade. In others, Covid significantly, distorts the
historical numbers.

16. 16
Factor Model: Used For Sizing/Screening Decisions
 We also use a quantitative factor model to assist with screening and sizing decision.
 Following are the Top 15 names with highest score in the Large Cap universe as of 31-March-2023. The fund owns 7
of these stocks.
Source: Bloomberg, As on 31-March-2023. The sector(s)/stock(s)/issuer(s) mentioned in this document 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(s).

17. 17
Performance in SEBI prescribed format
Fund Managers
Abhishek Singh – Managing since June 2022
Jay Kothari - Managing this fund since August 2018.

18. 18
Other funds managed by same fund manager
 Data as on 31 Mar 2023
 Growth option considered

19. 19
Other funds managed by same fund manager
 Data as on 31 Mar 2023
 Growth option considered

20. 20
Queries?
For any queries & questions regarding the portfolio write to: DSPTop100@dspim.com

21. 21
Disclaimers & Product Labelling
In this document DSP Asset 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 AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be
construed as any research report/research recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar
expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our
expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and
interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The sector(s)/stock(s)/issuer(s) mentioned in this document presentation
do not constitute any research report/recommendation of the same and the scheme may or may not have any future position in these sector(s)/stock(s)/issuer(s). The portfolio of the scheme is subject to changes
within the provisions of the Scheme Information document of the scheme. There is no assurance of any returns/potential/capital protection/capital guarantee to the investors in this Scheme. Past performance may
or may not sustain in future and should not be used as a basis for comparison with other investments. This document indicates the investment strategy/approach/framework currently followed by the Scheme and
the same may change in future depending on market conditions and other factors. All figures and other data given in this document are as on 31 Mar 2023 (unless otherwise specified) and the same may or may not be
relevant in future and the same should not be considered as solicitation/ recommendation/guarantee of future investments by the DSP Mutual Fund or the AMC or its affiliates. Investors are advised to consult their own legal, tax and
financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of schemes of DSP Mutual Fund. For complete details on investment objective, investment strategy, asset
allocation, scheme specific risk factors please refer the scheme information document and key information memorandum of the scheme, which are available at AMC and registrar offices and investor service centres/AMC website-
www.dspim.com For Index Disclaimer click Here
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Scheme Product Suitability
Riskometer
DSP Top 100 Equity Fund S&P BSE 100 TRI
DSP Top 100 Equity Fund
(Large Cap Fund-An open ended equity
scheme predominantly investing in large
cap stocks)
The Open ended scheme is suitable for investors who are seeking*
Long-term capital growth
Investment in equity and equity-related securities predominantly of
large cap companies
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.

22. #InvestForGood