NFO – Review – DSP Blackrock Healthcare Fund closing on 26th November

Mutual Fund NFO Details - DSP Blackrock Healthcare Fund 

Mutual Fund	DSP Mutual Fund
Scheme Name	DSP Healthcare Fund
Objective of Scheme	The primary investment objective of the scheme is to seek to generate consistent returns by predominantly investing in equity and equity related securities of pharmaceutical and healthcare companies. However, there can be no assurance that the investment objective of the scheme will be realized.
Scheme Type	Open Ended
Scheme Category	Equity Scheme - Sectoral/ Thematic
New Fund Launch Date	12-Nov-2018
New Fund Earliest Closure Date	26-Nov-2018
New Fund Offer Closure Date	26-Nov-2018
Indicate Load Separately	Entry Load: Not Applicable, Exit Load (as a % of Applicable NAV) Holding period from the date of allotment:<= 12 months – 1%, > 12 months – Nil. Note: No exit load shall be levied in case of switch of investment from Regular Plan to Direct Plan and vice versa.
Minimum Subscription Amount	Rs. 500/– and any amount thereafter.
For Further Details Please Visit Website	www.dspim.com

Source - Amfi 

What is a Mutual Fund NFO - A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.

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Important part of the SID Scheme Information Document

Type of scheme - An open ended equity scheme investing in healthcare and pharmaceutical sector

Investment Objective - The primary investment objective of the scheme is to seek to generate consistent returns by predominantly investing in equity and equity related securities of pharmaceutical and healthcare companies. However, there can be no assurance that the investment objective of the scheme will be realized.

Where will the scheme invest?

-          It will invest in Equity and equity related securities, government bonds, NCDs, short term deposits, InvITs, REITs

-          a sector specific Scheme, shall focus on investing in pharmaceutical, healthcare and associated companies as mentioned earlier, keeping ‘S&P BSE Healthcare Index’ comprising of 64 stocks.

Who will manage the fund?

The fund management includes the following team members-

Fund Manager	Brief Experience	Other schemes
Aditya Khemka Age – 37 years Qualification - B.Com, M Sc Finance, MBA from MDI (Gurgaon)	Over 11 Years of experience. October 2015 to present: Assistant Vice President - DSPIM. From February 2014 - October 2015: Pharma Analyst – Ambit Capital Private Limited. From November 2013 to February 2014: Pharma Analyst - Antique Stock Broking From April 2008 to November 2013: Pharma Analyst – Nomura Structured Financial Services	Nil
Vinit Sambre Age – 43 years Qualification – B.Com, FCA	Over 19 Years of experience from January 2010 to present: Vice President - DSPIM. From July 2007 - December 2009: Assistant Vice President - DSPIM. From November 2005 to June 2007: Assistant Vice President - Global Private Client with DSP Merrill Lynch	Co-Fund Manager - DSP Small Cap Fund and DSP Mid Cap Fund
Jay Kothari (Dedicat ed Fund Manager for overseas investments) Age - 37 years Qualification - Bachelor in Management Studies (BMS) Mumbai University MBA (Finance) - Mumbai University	Over 14 years of experience as detailed under: From 2010 to present – Vice President in Equity Investments and a Product Strategist at DSPIM From 2005 to 2010 – Mumbai Banking Sales Head at DSPIM From 2002 to 2003 - Priority Banking division at Standar	Fund Manager for DSP World Agriculture Fund, DSP World Mining Fund, DSP World Energy Fund and DSP World Gold Fund Co-Fund Manager for DSP Focus Fund, DSP US Flexible* Equity Fund, DSP Equity Savings Fund, DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund), DSP Regular Savings Fund, DSP Equity Opportunities Fund, DSP Global Allocation Fund, DSP Natural Resources and New Energy Fund, DSP Midcap Fund, DSP Small Cap Fund, DSP Top 100 Equity Fund.

Mymoneystreets Take –

DSP has a proven track record in India. Their funds DSP Tax Saver, DSP Midcap small cap is known best for the prudent fund management approach. However, Blackrock has sold their stake in DSP this year and we need to keep a watch on the performance. However, they have a decent asset size, moderately aggressive approach in the fund management. Additionally, Pharma sector in last 2 years has seen a bumpy ride and company with quality balance sheet and operational efficiency trading at an attractive PE. The stocks are trading 20-30% lower than their yearly high

Word of caution - This is a thematic fund, sector concentration is very high. Investors who already has existing exposure in diversified equity such as Large-cap/ Mid-cap – small cap funds and balanced funds can look for an extra exposure. Other than market related risks, the sector funds are cyclical in nature and gives a volatile return, ideal for 3- 7 years exposure and in SIP format.  Also, diversification is a key to good healthy portfolio.

Take on Fund manager

The fund is managed by first time fund manager Aditya Khemka, supported by Vinit Sambre with 20 years of experience, also fund-manager for the star fund – DSP Small cap fund.  The third manager has a big portfolio of many funds as well as dedicated fund manager for overseas investments.

Read the SID carefully before investing.