DSP World Mining Fund (Direct Plan – Growth): An In-depth Analysis
This report provides a comprehensive overview and performance analysis of the DSP World Mining Fund - Direct Plan Growth. It is a thematic Fund of Funds (FoF) that invests in the global mining and metals sector, primarily through the BlackRock Global Funds - World Mining Fund.
Fund Basics
Fund House: DSP Investment Managers
Category: Thematic (Global Mining)
Launch Date: Nov 23, 2009
Benchmark: S&P Global Natural Resources Net TR (INR)
Risk Profile
Official Rating: Very High
Volatility: 28-35% (Extremely Volatile)
Sharpe Ratio: 0.42 (Below Average)
Max Drawdown: -45.8% (Significant)
Ratings
Value Research: (2 Stars)
Morningstar: Not Rated
Dhan Platform: (0 Stars)
Overall, ratings are below average.
Portfolio Composition & Underlying Fund
The fund invests almost entirely in a single underlying scheme: the BGF World Mining Fund. This leads to very high concentration risk. The underlying fund focuses on major international mining firms.
Underlying Fund: BlackRock World Mining
Top Holdings:
- Glencore PLC
- Vale SA
- Rio Tinto
- BHP Group
Geographical Mix:
- Australia: 35%
- UK: 18%
- Brazil: 12%
- USA: 10%
Performance Analysis
Annualized Returns
Long-term performance over 5 years has been decent, but recent returns (1-3 years) are significantly weak, lagging behind both its benchmark and diversified international funds.
| Time Period | Fund Return (%) | Benchmark Return (%) |
|---|---|---|
| 1 Year | 1.92% | -5.2% to 3.8% |
| 3 Years | 6.13% | 4.5% to 7.2% |
| 5 Years | 14.17% - 14.22% | 12.8% to 15.1% |
| Since Launch | 53.32% | 45.2% to 58.7% |
Year-wise Performance vs. Benchmark
Peer Comparison (International Funds)
When compared to a broader set of international funds, the DSP World Mining Fund's performance is weak, ranking 8th out of the 10 listed peers. Funds with a broader, more diversified mandate like the S&P 500 index funds have delivered superior risk-adjusted returns.
| Fund Name | 1Y Return | 5Y Return | Expense Ratio | Rating |
|---|---|---|---|---|
| Motilal Oswal S&P 500 Index Fund | 28.5% | 18.5% | 0.50% | ⭐⭐⭐⭐ |
| Franklin India US Opportunities Feeder | 25.6% | 19.2% | 1.65% | ⭐⭐⭐⭐ |
| HDFC International Equity Fund | 24.2% | 17.5% | 1.45% | ⭐⭐⭐⭐ |
| DSP World Mining Fund | 1.92% | 14.22% | 1.51% | ⭐⭐ |
| Edelweiss Greater China Offshore | -8.5% | 8.5% | 2.25% | ⭐⭐ |
Investment Growth Calculator (SIP)
Use this calculator to estimate the future value of your monthly investments. The expected return is pre-filled with the fund's 5-year annualized return but can be adjusted.
Estimated Results
Enter your details and click "Calculate" to see your potential wealth.
Final Verdict & Investment Checklist
This fund is a highly specialized, high-risk thematic bet on the global mining sector. It is only suitable for aggressive investors with a deep understanding of commodity cycles and a very high-risk appetite.
Investment Checklist
- Recent Performance (1-3Y): Poor
- Long-Term Performance (5Y): Average
- Expense Ratio: High (1.51%)
- Risk Level: Very High
- Portfolio Concentration: Very High
- Peer Comparison: Weaker (8th/10)
- Overall Rating: Below Average (2/5)
Top Alternatives
For investors seeking international exposure with better diversification and stronger performance track records, consider these options:
- Motilal Oswal S&P 500 Index Fund: Broad market exposure, low cost, and strong returns.
- Franklin US Opportunities Fund: Focus on growth stocks with a consistent track record.
- HDFC International Equity Fund: A well-diversified portfolio across geographies.
Pingback: Mirae Asset Flexi Cap Fund Direct Growth Review