The MONEY TODAY-Plexus Management new fund evaluation analyses the DBS Chola Small Cap Fund and presents the report card.
Offer open: Till 20 December
Scheme type: Closed-ended small-cap equity for three years
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: Nil, Exit load: Nil (after three years)
Options: Cumulative and dividend
Investor grievances: B John Vijayan. Tel: (022) 66104941. Fax: (022) 22021123. E-mail: firstname.lastname@example.org
Objective: The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies with small market capitalisation.
Benchmark: BSE Small-Cap Index
Fund manager: R Rajagopal
Asset allocation: 65-100% equity of small caps | 0-35% equity of other companies | 0-35% debt and cash
Comparable existing scheme
Fund name: Franklin India Smaller Companies Fund
NAV* (Rs): 14.78
6-month return(%): 26.21
1-year return(%): 34.52
Idea distiller: Smaller cap stocks could offer a higher upside in the mid to long term. The fund seeks to capitalise on opportunities arising out of a fast growing economy.
Fund house report: DBS Chola has been in existence for the past 10 years. The fund has some interesting offerings and manages assets worth Rs 4,788.69 crore.
Track record: Returns profile: 3/5 | Risk profile: 4/5
Fund manager report: Performance of fund manager
Returns profile: 3/5 | Risk profile: 3/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: low | Return possibility: high | Risk: high | Operability/complexity: high
Who should apply: Investors seeking an aggressive, long–term approach to capital growth through a diversified portfolio of small-cap stocks should invest in this fund
Remember: This is a high-risk, high-return fund. The portfolio will comprise 40-60 stocks and research will be the key to pick winners out of the 400-odd stocks in the BSE Small-Cap Index.
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