DSP Small Cap Fund(IDCW-Reinv)

Ticker: mf14327
Risky 48/100

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Business Overview

DSP Small Cap Fund (IDCW-Reinv) is designed for investors seeking long-term capital appreciation through exposure to small-cap stocks in India. This fund is ideal for those with a higher risk appetite looking to diversify their portfolio and capitalize on the growth potential of emerging companies. With a focus on quality and growth, it aims to deliver superior returns over time.

  • Targeted at long-term investors
  • Focus on high-growth small-cap stocks
  • Potential for significant capital appreciation
  • Diversifies investment portfolios
  • Managed by experienced professionals

Investment Thesis

DSP Small Cap Fund stands out due to its credible promoter group and robust track record. With the digital services sector poised for significant growth, this fund is well-positioned to capitalize on emerging opportunities. Moreover, its attractive valuation compared to peers makes it a compelling choice for investors seeking long-term gains.

  • Strong backing from a reputable promoter group enhances trust and stability.
  • Digital services sector shows promising growth potential, offering ample investment opportunities.
  • Attractive valuation compared to peers, making it a cost-effective investment.
  • Diversified portfolio reduces risk while maximizing growth potential.
  • Proven track record of performance instills confidence among investors.

Opportunity vs Risk

Opportunities
  • Strong potential for high returns
  • Diversification in small-cap stocks
  • Growing Indian economy boosts small caps
  • Increased retail investor participation
  • Focus on emerging sectors
Risks ⚠️
  • High volatility in small-cap stocks
  • Market corrections can impact returns
  • Liquidity issues in smaller companies
  • Regulatory changes may affect performance
  • Economic downturns could hurt growth

Peer Perspective

DSP Small Cap Fund trades at a slight premium compared to peers like SBI Small Cap Fund and Nippon India Small Cap Fund. A rerating could occur if it demonstrates consistent growth and margin stability.
📊 Stock Investment Checklist (100 Points)
DSP Small Cap Fund(IDCW-Reinv) • Updated: 2025-10-01 14:37:43
  • 10
    Business
    High
    The sector shows potential but lacks a strong moat.
  • 10
    Growth
    High
    Revenue growth has been inconsistent over the past few years.
  • 10
    Profitability
    High
    ROE and ROCE are below industry averages.
  • 8
    Valuation
    High
    Valuation metrics are higher compared to peers.
  • 7
    Balance
    High
    Debt levels are manageable but liquidity is a concern.
  • 6
    Governance
    Good
    Promoter holding is decent but there are some pledging issues.
  • 5
    Drivers
    Good
    Limited growth catalysts identified.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100 • Risky
The fund faces several challenges in terms of growth consistency and profitability, making it a risky investment at this time.