The DSP Value Fund is an open-ended equity mutual fund that follows a value investing strategy, aiming to invest in undervalued Indian and international companies. It is available in two plans: Regular and Direct, both offering Growth options.
Key Details
| Feature | Regular Plan | Direct Plan |
|---|---|---|
| Launch Date | December 10, 2020 | December 10, 2020 |
| NAV | ₹20.10 | ₹20.79 |
| AUM | ₹926.64 Crores | ₹926.64 Crores |
| Expense Ratio | 1.71% | 0.94% |
| Exit Load | 1% if redeemed within 12 months | 1% if redeemed within 12 months |
| Minimum Investment | ₹100 (Lump sum & SIP) | ₹100 (Lump sum & SIP) |
| Risk Level | Very High | Very High |
| Benchmark | Nifty 500 Value 50 TRI | Nifty 500 Value 50 TRI |
DSP Value Fund NAV
As of May 9, 2025, the Net Asset Values (NAVs) for the DSP Value Fund are:
- Direct Plan – Growth Option: ₹20.85
Fund Managers of DSP Value Fund
The DSP Value Fund is managed by two experienced professionals: Aparna Karnik and Kaivalya Nadkarni. They bring a blend of expertise in quantitative analysis, equity research, and global investment strategies.
Aparna Karnik – Lead Fund Manager
- Role: Lead Fund Manager, overseeing both equity and overseas portions of the DSP Value Fund.
- Managing Since: May 1, 2022
- Experience: Over 21 years in investment, credit, and operations risk management.
- Education: Master’s in Management Studies from Jamnalal Bajaj Institute of Management Studies.
Other Funds Managed:
- DSP Quant Fund (since May 2022)
- DSP Multi Asset Allocation Fund (since September 2023)
Kaivalya Nadkarni – Co-Fund Manager
- Role: Co-Fund Manager, focusing on the equity portion of the DSP Value Fund.
- Managing Since: October 1, 2024
- Experience: Over 6 years in fund management, equity dealing, and fund accounting. Prior to joining DSP in September 2024, she worked with ICICI Prudential AMC, RSN & Company, and G.M. Kapadia & Co.
Education:
- Bachelor of Commerce (B.Com)
- Chartered Accountant (CA)
- Company Secretary (CS)
- Cleared CFA Level III
Other Funds Managed:
- DSP Arbitrage Fund (since October 2024)
- Dynamic Asset Allocation Fund (since October 2024)
- DSP Equity Savings Fund (since October 2024)
- DSP Income Plus Arbitrage FoF (since March 2025)
Together, Aparna and Kaivalya bring a comprehensive approach to managing the DSP Value Fund, combining quantitative analysis with value investing principles to identify undervalued opportunities in both domestic and international markets.
DSP Value Fund Review
Here is a comprehensive review of the DSP Value Fund (as of May 2025), based on fund strategy, performance, risk profile, and comparative benchmarks:
Overview
The DSP Value Fund is an equity mutual fund that follows a value investing strategy—focusing on stocks that are considered undervalued relative to their intrinsic worth. It is suitable for long-term investors with high risk tolerance who are looking for opportunities in underpriced companies.
Pros:
- Outperformed its benchmark over 3 years and since inception.
- Strong long-term compounding, driven by disciplined stock selection.
- Managed by experienced professionals.
- Exposure to global value funds adds diversification.
Cons:
- 1-year performance lags behind benchmark (likely due to cash holdings and conservative positioning).
- High volatility – suitable only for investors with a long-term horizon.
- Exit load of 1% if redeemed within 12 months.
Fund Strategy
- The fund invests heavily in undervalued Indian stocks across market capitalizations.
- International allocation (up to 35%) via global value managers like Harding Loevner and Veritas, offering global diversification.
- The fund sometimes holds cash positions (up to 15%) during market overvaluations to protect downside and reinvest later.
DSP Value Fund Portfolio
As of March 31, 2025, the DSP Value Fund maintains a diversified portfolio with a strategic allocation across domestic equities, international funds, and cash equivalents.
Top Holdings
| Holding Name | Type | Allocation (%) |
|---|---|---|
| Harding Loevner Global Equity Fund | International Mutual Fund | 7.23% |
| HDFC Bank Ltd. | Indian Equity | 6.78% |
| Berkshire Hathaway Inc. (Class B) | International Equity | 3.76% |
| Veritas Global Focus Fund | International Mutual Fund | 3.53% |
| Larsen & Toubro Ltd. | Indian Equity | 3.09% |
| Infosys Ltd. | Indian Equity | 2.64% |
| ITC Ltd. | Indian Equity | 2.54% |
| Hero MotoCorp Ltd. | Indian Equity | 2.47% |
| Power Grid Corporation of India Ltd. | Indian Equity | 2.33% |
| Cipla Ltd. | Indian Equity | 2.21% |
Sector Allocation
| Sector | Allocation (%) |
|---|---|
| Pharmaceuticals & Biotechnology | 8.9% |
| Automobiles | 5.6% |
| IT – Software | 5.3% |
| Construction | 3.9% |
| Non-Ferrous Metals | 2.7% |
| Auto Components | 2.6% |
| Diversified FMCG | 2.5% |
| Ferrous Metals | 2.4% |
| Petroleum Products | 2.4% |
| Power | 2.3% |
International Exposure
The fund has a notable international allocation through investments in global mutual funds and equities:
- Harding Loevner Global Equity Fund: 7.23%
- Veritas Global Focus Fund: 3.53%
- Berkshire Hathaway Inc. (Class B): 3.76%
Market Capitalization Breakdown
| Market Cap Segment | Allocation (%) |
|---|---|
| Large Cap | 35.67% |
| Mid Cap | 8.85% |
| Small Cap | 7.48% |
DSP Value Fund Returns
Here is a detailed table of DSP Value Fund returns (as of May 10, 2025) for both Regular and Direct plans in the Growth option:
Performance
| Time Period | Regular Plan Returns (% CAGR) | Direct Plan Returns (% CAGR) | Benchmark (Nifty 500 Value 50 TRI) |
|---|---|---|---|
| 1 Month | 0.35% | 0.47% | 0.58% |
| 3 Months | 2.44% | 2.81% | 3.12% |
| 6 Months | 7.29% | 7.85% | 8.11% |
| 1 Year | 9.02% | 9.93% | 11.52% |
| 3 Years | 17.65% CAGR | 18.54% CAGR | 15.20% CAGR |
| Since Inception (Dec 2020) | 17.10% CAGR | 18.00% CAGR | 14.80% CAGR |
Key Insights
- Outperformed benchmark consistently over 3 years and since inception.
- 1-year returns lag benchmark, possibly due to defensive allocation and high cash holdings.
- International exposure offers diversification, but may slightly dampen short-term gains when global markets underperform Indian equities.
SIP Returns
| SIP Duration | Total Investment (₹) | Market Value (₹) | Returns (% XIRR) |
|---|---|---|---|
| 1 Year | ₹12,000 | ₹12,635 | 9.75% |
| 2 Years | ₹24,000 | ₹26,600 | 13.05% |
| 3 Years | ₹36,000 | ₹44,210 | 17.55% |
| Since Inception (Dec 2020) | ₹52,000 | ₹71,230 | 18.85% |
Key Observations
- Strong SIP XIRR over 3 years and since inception, reflecting good compounding via value investing.
- Consistent performers like HDFC Bank, L&T, and Infosys have helped deliver steady gains.
- Global exposure helped reduce downside in certain phases, though it may limit upside in pure domestic rallies.
DSP Value Fund Direct Growth
Here is a detailed performance table for the DSP Value Fund – Direct Plan (Growth Option) as of May 10, 2025:
| Time Period | Absolute Returns (%) | Annualized Returns (% CAGR) |
|---|---|---|
| 1 Month | 0.47% | – |
| 3 Months | 2.81% | – |
| 6 Months | 7.85% | – |
| 1 Year | 9.93% | 9.93% |
| 2 Years | 18.78% | 8.99% |
| 3 Years | 66.80% | 18.54% |
| Since Inception (Dec 01, 2020) | 101.55% | 18.00% |
Performance Highlights
- Strong 3-year CAGR: Outpaced many peers and the benchmark.
- International exposure via global funds like Harding Loevner and Veritas adds diversification.
- Value strategy: Focus on undervalued quality stocks across sectors and market caps.
- Short-term performance can be volatile due to cash positioning and global market swings.
Strengths of DSP Value Fund
1) Value-Oriented Strategy:
- The fund follows a disciplined value investing approach, focusing on fundamentally strong companies that are temporarily undervalued. This can lead to superior long-term returns when valuations normalize.
2) Experienced Fund Managers:
- Managed by seasoned professionals like Aparna Karnik and Kaivalya Nadkarni, who bring a blend of macroeconomic understanding and bottom-up stock-picking skills.
3) Global Diversification:
- It invests a portion of the corpus (up to 35%) in international funds like Harding Loevner Global Equity and Veritas Global Focus. This reduces country-specific risks and adds exposure to global value stocks.
4) Reasonable Expense Ratio:
- Especially in the Direct Plan, the fund maintains a competitive expense ratio, making it cost-effective for long-term investors.
5) Downside Protection:
- The fund has shown the ability to hold cash during periods of market overvaluation, which helps protect capital during downturns.
Risks of DSP Value Fund
1) Underperformance in Growth Phases:
- Value funds can underperform during bull markets led by growth or momentum stocks, as they avoid overvalued sectors and themes.
2) International Exposure Volatility:
- Global investments are subject to currency risk, geopolitical developments, and foreign market volatility, which can impact short-term returns.
3) Higher Volatility than Blended Funds:
- Due to concentrated bets in undervalued sectors or companies, short-term volatility can be higher than more diversified or balanced equity funds.
4) Cash Drag:
- Holding a large cash position to wait for better valuations can lead to underperformance during strong upward markets.
5) Not Ideal for Short-Term Goals:
- Since value investing takes time to play out, the fund is not suitable for investors with short-term horizons or low risk appetite.
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