DSP BLackRock Micro Cap Fund Review and latest news

DSP BlackRock Micro Cap - Introduction

DSP BlackRock Micro Cap Fund is the best mutual fund in 'equities diversified' category (best as per according to NSE MF Tracker. Note that this rating 'best' is only based on the past performance of the mutual fund, unlike CRISIL CPR ratings which not only take into account not just performance but also other risk minimizing factors like sector concentration, industry concentration and liquidity. However, DSP BlackRock Micro Cap Fund is not rated by Crisil yet. In any case, I personally think that this is the one of the best mutual funds to invest in (especially SIP - Systematic Investment Plan) in the coming years. Moreover, this mutual fund makes an even more attractive investment options in view of the latest news (see below) which says that DSP Blackrock Micro Cap Fund will now be converted into an open ended scheme. Earlier SIP in this scheme was not possible. Below are some of the highlights of this micro cap mutual fund scheme.

Highlights and key points of DSP BlackRock Micro Cap Fund

  1. Open Ended scheme - with no entry and exit load. An exit load of 0.25% will be charged if units are redeemed before 7 days.
  2. Investment idea - Micro Cap Stocks - DSP Blackrock Micro Cap Fund invests company's which are 'small' in the sense that these companies do not belong to the top 300 companies by market capitalization. Let us call these stocks as micro cap stocks. According to information on Blackrock page, 65%-100% of the portfolio will consist of micro cap stocks while 0-35% of the portfolio may consists of other equities. Click on DSP BLackrock micro cap portfolio to check out its portfolio at various available dates in the past.
  3. Fund Recurring expenses - The fund recurring expenses are about 2.5% (annual).
  4. Mutual fund Past performance - Click on DSP BlackRock Micro Cap NAV and past performance to find out more.

DSP Blackrock Micro Cap Fund now an open ended scheme from June 15 2010 - latest news

The following is an announcement directly on DSP blackrock funds page.

DSP Merrill Lynch Mutual Fund News
DSP BlackRock Mutual Fund has announced that DSP BlackRock Fund, which is currently a close ended scheme, will be converted into an open ended scheme. The change will be effective from 15th June, 2010. The scheme will offer regular and institutional plan with growth option. The minimum application amount under regular plan is Rs. 1000 and for institutional Rs.5 crore. The scheme will be managed by Mr. Apoorva Shah and Mr. Vinit Sambre. The scheme will charge 0.25 per cent exit load, if units are redeemed within 7 days from the date of allotment. Investors, who do not agree to the revision, have an option to redeem or switch their units on or before 14th June, 2010 without paying any exit load.

Jun 13, 2010

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