Outlook Money Outlook Money, July 2018 | Page 44

Morningstar Mutual Fund Guide DSP BlackRock Top 100 Manager Biography and Fund Strategy H arish Zaveri took over the fund management responsibilities in June 2015. Zaveri is a decorated analyst who has an extensive research experience spanning over two decades. The entire portfolio is invested in large cap stocks. As a risk control measure, the manager has to exit a stock if it falls from the top 100 stocks by market cap, even if he has a positive view on its prospects. While constructing portfolio, he doesn’t pay heed to sector or stock weights in the benchmark index. Zaveri uses a combination of top- down and bottom-up approaches while investing with the latter being more prominent. The manager studies the company’s growth prospects, expected cash flows, and quantitative parameters (ROE, P/E, and P/B) with an overlay of qualitative aspects while analysing a stock for making investment. Additionally, he also looks at earning visibility in a company before investing in it. His style of investing also involves protecting the fund from potential short-term losses. For instance, if he sees significant downtrend in a stock in the interim, he will exit the stock and re-enter at an opportune time, in order to arrest its impact on the fund. Within the defined boundaries, Zaveri plies a rather fluid investment approach as he can shift between sectors, themes and stocks based on where he sees opportunity. He does not shy away from having significant exposure to a particular sector or stock. Hence, the portfolio is a relatively concentrated one. Zaveri constructs a portfolio of 30-40 stocks with the top ten stocks accounting for 50-60 per cent of the portfolio. Calendar Year Returns Calculation Benchmark: S&P BSE 100 India TR INR 100 80 60 40 20 0 -20 26.5 -0.3 0.7 YTD 37.5 34.2 33.3 4.9 5.0 2.2 7.6 -2.3 -2.0 2017 2016 DSP BlackRock Top 100 Equity Reg Gr 2015 2014 2013 S&P BSE 100 India TR INR Portfolio Date: 31/5/2018 % Basic Materials Consumer Cyclical Financial Services Real Estate Consumer Defensive Healthcare Utilities Communication Services Energy Industrials Technology Total Top Holdings HDFC Bank Ltd Maruti Suzuki India Ltd Reliance Industries Ltd Larsen & Toubro Ltd IndusInd Bank Ltd Housing Development Finance Corp Ltd Bajaj Finance Ltd Kotak Mahindra Bank Ltd ITC Ltd ICICI Bank Ltd Data Point: Return Calculation Benchmark: S&P BSE 100 India TR INR YTD 1 Year 3 Years 5 Years 10 Years DSP BlackRock Top 100 Equity Reg Gr -0.31 7.68 8.40 13.45 10.39 S&P BSE 100 India TR INR 0.66 12.82 10.47 14.61 9.71 Average -1.02 10.24 9.40 15.12 9.92 Outlook Money July 2018 www.outlookmoney.com 9.2 21.2 46.3 0.0 3.6 0.8 0.0 0.0 10.6 8.3 0.0 100.0 Portfolio Weighting (%) 13.35 8.61 6.88 6.43 4.95 4.71 4.33 3.79 3.59 2.96 Fund Snapshot Morningstar Category Trailing Returns 44 Equity Sectors India Fund Large - Cap Fund Size (`) 30 billion Inception Date 10/3/2003 Annual Report Net Expense Ratio 2.28 Morningstar Rating Overall *** Manager Name Harish Zaveri Minimum Investment (`) 1,000 Morningstar Analyst Rating Bronze Data Source: Morningstar India