The DSP BlackRock Short Term Fund is a mutual fund investment scheme that aims at generating income commensurate with a prudent risk, from a portfolio comprising of money market securities and debt securities. This mutual fund investment is basically an open-ended income scheme that is ideal for investors looking for returns over a short to medium-term investment horizon. Launched in 2002, this scheme ranks amongst the top mutual funds in India and is currently ranked third in the ‘Debt Short Term’ category by CRISIL for the quarter ended December 2017; a rank which remains unchanged from the previous quarter. The fund’s expense ratio is below the category median thus making it one of the least expensive funds in the category.
Benchmarked against the Crisil Short-Term Bond Index, this fund is co-managed by the renowned team of Kedar Karnik and Laukik Bagwe, both of whom took over the reigns in the month of July 2016. If you’re looking to make a one-time investment in this fund, the minimum investment required is Rs. 1,000. Similarly, if you’re planning to opt for SIP Investment, the minimum SIP is pegged at Rs. 500 per month.
This mutual fund investment scheme maintains ~90 per cent of the allocation towards AAA-rated assets while the rest is allocated to AA+/AA assets. The management team especially looks at tactical duration plays to enhance the overall return. This fund is specially designed to satisfy the current needs of investors and to fulfil their medium-term financial objectives. To that regard, the fund management team under the stewardship of Kedar Karnik and Laukik Bagwe have increased the allocation to AAA assets as spreads are not very attractive. Further, they are always on the lookout to add exposure to AA+/AA papers as and when spreads show any signs of improvement. The fund has also taken an exposure to AT1* Bonds of high-quality banks that offer higher accrual while reducing the exposure to 5-year corporate bonds and switching to 5-year Government securities which are offering higher accrual. The top 5 holdings include Cblo / Reverse Repo Investments, HDFC Bank Limited, ONGC Mangalore Petrochemicals Limited, Indian Railway Finance Corporation Limited, and Rural Electrification Corporation Limited.
The Bottom Line
If you are looking to create corpus keep in mind a short to medium-term investment horizon, then why not invest in one of the top mutual funds in India where you get to park your cash for a period ranging from 9 months- 2 years. For more details regarding DSP Blackrock Short Term Fund, you can approach our financial advisors for customized investment plans. Our expert team of financial advisors are available at all times and will be more than glad to answer all your queries about the best mutual fund to invest in full earnest.