DSP BlackRock Equity Opportunities Fund VS SBI Large and Midcap Fund

DSP BlackRock Equity Opportunities Fund and SBI Large and Midcap Fund both belong to the category of diversified Equity Funds. Diversified Funds, in simple terms, are the schemes whose corpus is invested in schemes across market capitalization. In other words, these schemes invest their money in shares of large-cap, mid-cap and small cap stocks. On a general note, diversified funds invest around 40-60% of their fund money in shares of large-cap companies, 10-40% in mid-cap companies and the remaining portion of the fund money in small-cap stocks. Diversified funds are also known as Multicap or Flexicap funds. These schemes adopt a value or growth style Investing strategy. Though both DSP BlackRock Equity Opportunities Fund and SBI Large and Midcap Fund belong to the same category, yet they differ on account of numerous parameters. So, let’s understand the differences between both the schemes based on these parameters.

DSP BlackRock Equity Opportunities Fund (Erstwhile DSP BlackRock Opportunities Fund)

Being a part of DSP BlackRock Mutual Fund, the scheme’s objective is to attain capital appreciation over the long-term tenure by investing in a portfolio consisting of shares belonging to the large and mid-cap category. This scheme was launched in the month of May 2000. Some of the features of DSP BlackRock Equity Opportunities Fund are opportunistic investment approach, objective to adapt to changing market trends, and diversified portfolio of a combination of large and mid-cap stocks. As on March 31, 2018, some of the top holdings of DSP BlackRock Equity Opportunities Fund include HDFC Bank Limited, ICICI Bank Limited, State Bank of India, Tata Steel Limited, and HCL Technologies Limited. DSP BlackRock Equity Opportunities Fund (earlier known as DSP BlackRock Opportunities Fund) is jointly managed by Mr. Rohit Singhania and Mr. Jay Kothari.

SBI Large and Midcap Fund (Erstwhile SBI Magnum Multiplier Fund)

SBI Large and Midcap Fund (earlier known as SBI Magnum Multiplier Fund) is a part of SBI Mutual Fund that uses S&P BSE 200 Index as its portfolio to construct its portfolio.SBI Large and Midcap Fund is suitable for investors seeking for capital appreciation along with an investment horizon of long-term. This scheme is solely managed by Mr. Saurabh Pant. This scheme invests its accumulated fund money in shares of large-cap, mid-cap and small-cap companies. As on March 31, 2018, some of the top 10 holdings of SBI Large and Midcap Fund consisted of ICICI Bank Limited, HDFC Bank Limited, Jubilant Foodworks Limited, and Mahindra & Mahindra Financial Services Limited. Based on the Asset Allocation objective of the scheme, it invests a minimum of 70% of its fund money in equity and equity-related instruments and the remaining proportion will be invested in fixed income and money market instruments.

DSP BlackRock Equity Opportunities Fund Vs SBI Large and Midcap Fund

Both DSP BlackRock Equity Opportunities Fund and SBI Large and Midcap Fund belong to the same category of diversified fund. However, there are numerous differences between them. So, let us analyze the differences between both the schemes on the basis of four sections given below.

Basics Section

Being the first section, it compares parameters such as current NAV, scheme category, and Fincash Rating. With respect to the NAV, it can be said that both the schemes differ. As on April 26, 2018, the NAV of DSP BlackRock Equity Opportunities Fund was around INR 220 while of SBI Large and Midcap Fund was approximately INR 216. About scheme category, it can be said that both the schemes belong to the same category of Equity Diversified. However, with respect to the Fincash Rating also, both the schemes differ. Based on Fincash Rating, it can be said that DSP BlackRock Mutual Fund’s scheme is rated as a 5-Star scheme and SBI Mutual Fund’s scheme is rated as a 4-Star scheme. The summary of the basics section is tabulated as follows.

Performance Section

Compounded Annual Growth Rate or CAGR returns is the comparable parameter forming part of the basics section. The CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. The comparison of performance section shows that in certain instances, DSP BlackRock Equity Opportunities Fund leads the race while in others SBI Large and Midcap Fund leads the race. The table given below summarizes the comparison of the performance section.

Yearly Performance Section

The comparison of the absolute returns for a particular year earned by both the schemes is done in the yearly performance section. The comparison of absolute returns states that in certain years SBI Large and Midcap Fund has done better while in others, DSP BlackRock Equity Opportunities Fund has done better. The table given below shows the summary comparison of the absolute returns section.

Other Details Section

Being the last section in the comparison, it includes parameters such as AUM, minimum SIP investment, and minimum lumpsum investment. The minimum SIP investment for both the schemes is same, that is, INR 500. However, the minimum lumpsum investment is different for both the schemes. the lumpsum amount in case of DSP BlackRock Equity Opportunities Fund is INR 1,000 and SBI Large and Midcap Fund is INR 5,000. The comparison of AUM also indicates a difference between both the schemes. the AUM of DSP BlackRock Mutual Fund’s scheme is around INR 5,069 Crores while of SBI Large and Midcap Fund is around INR 2,157 Crores. The summary comparison of the other details section is tabulated as follows.

Growth of 10k Investments over the years