DSP Midcap Fund: SIP Performance Review

Published: July 11, 2020 at 9:29 am

Last Updated on July 14, 2020

We evaluate the SIP performance of DSP Midcap Fund with multiple benchmarks.  The fund may not be popular on personal finance forums but it has the second-largest AUM in the midcap fund category with almost Rs. 6500 crores.

In our July 2019 review of the fund, we had said, “DSP Midcap has been one of the top three performers in the mid cap space in term of consistently beating the benchmark over 1,2,3,4 and 5 years with good downside protection“.

It had also featured in these two lists: Only these 3 midcap mutual funds have beat Nifty Next 50 consistently! and Only 6 Midcap Mutual Funds beat Nifty Midcap 150 in the last 5 years. So expectations are fairly high from this fund.

Like most midcap and smallcap funds today, the fund also started out as DSP BlackRock Small and Mid Cap Fund (BlackRock has since exited) in Nov 2006 with a mandate to invest 65% of assets outside the top 100 companies by market capitalization (both mid and small cap stocks).

To comply with SEBI categorization rules, the fund became DSP Midcap in March 2018. This shift is evident from its market cap allocation history since July 2017. The fund has had a balanced multicap like market cap allocation before the change in mandate. This must be kept in mind while evaluating the SIP returns below.

Market cap allocation history of DSP Midcap Fund

SIP Performance of DSP Midcap Fund

We compare the 1-13 year SIP performance of the fund with:

  • Nifty LargeMidcap 250 Index – TRI
  • Nifty MidSmallcap 400 Index – TRI
  • Nifty Midcap 150 – TRI
  • Nifty Midcap 50 – TRI
  • Nifty Midcap 100 – TRI
  • NIFTY NEXT 50 – TRI

These benchmarks are reasonably representative of (1) the fund’s past mandate; (2) the fund’s present mandate and (3) what the fund ought to beat Nifty Midcap 1000 and NIfty Next 50.

SIP DurationDSP Midcap Fund(G)-Direct PlanDSP Midcap Fund-Reg(G)Nifty Midcap 150 – TRINifty Midcap 50 – TRINifty Midcap 100 – TRI
1Y5.404.482.152.35-1.83
2Y4.143.20-2.32-4.05-6.27
3Y2.191.29-3.35-4.73-7.05
4Y4.013.08-0.07-1.39-3.97
5Y6.675.713.102.16-0.59
6Y8.057.104.793.461.42
7Y11.7910.808.306.274.94
8Y12.389.927.586.62
9Y13.1610.908.157.67
10Y12.9610.737.737.69
11Y13.2810.847.498.02
12Y14.8312.158.329.42
13Y14.3511.587.769.15

 

SIP DurationDSP Midcap Fund(G)-Direct PlanDSP Midcap Fund-Reg(G)NIFTY NEXT 50 – TRINifty LargeMidcap 250 Index – TRINifty MidSmallcap 400 Index – TRI
1Y5.404.481.800.980.01
2Y4.143.20-1.05-1.37-4.95
3Y2.191.29-2.02-1.17-6.38
4Y4.013.080.911.89-3.04
5Y6.675.713.904.490.34
6Y8.057.105.415.512.22
7Y11.7910.808.157.956.07
8Y12.389.699.247.89
9Y13.1610.7710.098.97
10Y12.9610.659.958.90
11Y13.2810.8010.019.10
12Y14.8312.3711.0510.44
13Y14.3511.9010.589.95

That is indeed an excellent track record. While that is no guarantee of future outperformance, it is a good enough reason to invest in the fund.

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