DSP Large Cap Fund

Fund of the Month: DSP Large Cap Fund

Fund Manager: Abhishek Singh
 

SEBI Categorisation: Large Cap Fund
 

Type & Investment Objective

The primary investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of large cap companies. From time to time, the fund manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction.

Fund Investment Strategy

Large Cap Fund invests in companies from among the top 100 in India- large, well-known leaders in their respective sectors. Fund can have very high active share compared to benchmark thereby return profile can be materially different from benchmark. Among the most differentiated portfolios in the category, with 30-odd stocks. High active share, competition and benchmark agnostic portfolio. The Fund manager follows Value style (intrinsic) with a clear margin of safety. Absolute-return mindset where possible. Benchmark- and competition-agnostic.
 

Outlook

• As per the AMC, Global equity valuations have come off year-to-date highs, though they remain above long-run averages. December saw a risk-on tone, with the MSCI All Country World Index up 0.8%, driven by a strong 2.6% gain in emerging markets, while the US lagged amid concerns around concentration and valuations. The US Federal Reserve cut policy rates by 25 bps, while the Bank of Japan continued its hiking stance, taking rates to 0.75%, the highest in 30 years. Gold made fresh record highs, and silver even more so.

• The current market setup is very different from the US. While US mega caps are delivering ROEs of over 35% with profit growth in excess of 20%, Indian large caps are seeing profit growth of less than 10% with ROEs closer to 18–20%. This suggests that Indian large caps can act as a hiding place for investors until the earnings cycle recovers. Until then, the rest of the market should be approached with caution. From an asset-allocation perspective, it makes sense to remain conservative and prefer hybrid strategies when deploying fresh capital.

• On the macro side, patchy growth combined with fiscal discipline is creating an opening in Indian government bonds, especially in the 10-year and longer maturities. Central government gross market borrowing has stabilised as a share of GDP, CPI inflation has cooled to near multi-decade lows, and the gap between nominal GDP growth and the 10-year G-Sec yield has narrowed to around 2.5–3%, leaving room for lower policy and term rates if growth remains uneven.

Sectoral Overweights

• Financials: High-quality franchises are now available at conservative to fair valuations.

Sectoral Underweights

• Capex/Infra: Bottom-up stock picking, hence the underweight sectors are a function of what FM

prefer over the other. Growth can disappoint

Sectoral Attribution – Fund Vs Benchmark – 1 Year Performance

• Top Contributor – Consumer Discretionary, Financial and IT

• Top Detractor - Communication service, Energy and Healthcare

Active Share (%): 77

This fund is recommended for investors with an investment horizon of 2-3 years, in line with

investors’ individual risk profile and product suitability.

Returns (%)                                       (As on 28 November 2025)                                                                                                                                            

Scheme Features
  

• Options: Growth and Income Distribution cum capital withdrawal (IDCW)

• Minimum Investment amount: Rs. 100

• Load Structure Exit Load: If redeemed before 12 Months; Exit Load is 1%;

• Benchmark Index: BSE 100 TRI

• December 2025 [Fund Size in Crs] 7,284.55

• NAV: 52 Week High / Low: Rs. 489.58 / 420.37
  
   

Product Label

This product is suitable for investors who are seeking^:

-> Long term capital growth.

-> Investment in equity and equity related securities predominatly of large cap companies.

Source for entire data stated above is ICRA Analytics Ltd. (For Disclaimer of ICRA Analytics Ltd, refer https://icraanalytics.com/home/disclaimer)

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