DSP BlackRock Balanced Fund - Rating & Review - Invest

DSP BlackRock Balanced Fund – Rating & Review – Invest

Roboadviso     Mutual Funds Rating     Posted On, Sat 8th July, 2017     No comments
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  • Last modified: July 21, 2017

DSP Black Rock Balanced Fund Rating Review

DSP BlackRock Balanced Fund is an open ended balanced scheme which aims to generate capital growth in the long term along with current income via a portfolio consisting of a combination of equity and equity linked instruments and money market, debt, and other fixed income securities.

Presented below is a comprehensive review of this balanced fund which will provide you with all the required information that you need to make a better choice about whether to buy, sell, or hold this fund.

Basic costs and other information

DSP BlackRock Balanced Fund was launched on May 27, 1999. It has thus been in the business for a long time and remained a successful fund. As of 31st May 2017, this equity-focused fund has assets of INR 4,473 crores. The minimum required investment for lump sum investment route is INR 1,000, while it is INR 500 in case of SIP or Systematic Investment Planning method.

The expense ratio as of 31st May 2017 is 2.45 percent. If investors redeem their fund investment within a period of one year or 365 days of holding it, then the exit load is 1%.

Atul Bhole has been the fund manager since June 2016. He was joined by Vikram Chopra and Pankaj Sharma in July 2016. Bhole graduated with honors in B.Com and is a Chartered Accountant. He has also done MMS. Before joining DSP Balanced Fund, he was working for Tata AMC, SBI Treasury and JP Morgan Services Pvt. Ltd. Pankaj Sharma is a BE in Computer Engineering. He also holds a PGDM from Jamshedpur’s XLRI. He has over 15 years work experience in Finance and Banking industry. He joined DSP in 2003 and is now heads the Fixed Income department. Sharma has previously worked for Infosys Technologies and Citibank. Vikram Chopra holds an honors B.Com degree and an MBA from the Institute of Management. His previous work experience includes companies like Axis Bank Ltd, IDBI Bank Ltd., and Fidelity AMC.

Asset Allocation of the fund

As of 31 May 2017, the fund’s allocation stands as 74.25 percent in equities, 24.54% in debt, and 1.21% in Cash/Call.

As of 31 May 2017, the top 6 sectors that the fund’s portfolio focuses on include Banking/Finance (22.95%), Cement (8.73%), Oil & Gas (7.59%), Engineering (5.64%), Automotive (5.14%), and Chemicals (5.10%).

As of 31 May 2017, the top 6 stocks that make up the fund portfolio include ITC (4.17%), HDFC Bank (3.60%), SBI (3.45%), ICICI Bank (3.38%), Larsen & Toubro (2.85%), and GAIL (2.68%).


As of Jun 30, 2017, DSP BlackRock Balanced Fund has produced a 12 percent return per annum in the last 10-year period. This shows that the fund beats the category average of 9 percent for the same period. From the time of launch the fund has delivered 15.50 percent per annum returns.

In the past 1, 3, and 5 years, the fund has shown 18.66, 15.72, and 16.22 percent returns per annum. Thus the 3-year returns of the fund are nearly 3% points better than the category returns. On a 5-year period, the out performance margins of the fund vis-à-vis the category is marginally better.

If the topmost holdings are taken into consideration, then it can be said that the DSP Balanced Fund heavily leans towards the banking and finance sector. As per data of the past 3 years, the fund’s standard deviation, i.e., the volatility of the returns of the fund is 11.73% as of 31st May 2017. This is higher than the category average which is 10.04% for the same period. 

When the returns of DSP Balanced Fund are compared with its peers during the past 5 year period, then at 16.22 percent returns it has not done as well as other similar funds like HDFC Balanced Fund (18.83%), ICICI Prudential Balanced Fund (19.38%), SBI Magnum Balanced Fund (19.00%), and Tata Balanced Fund – Regular Plan (17.90%). However, when looking at the fund’s returns from a 3-year perspective, then other funds in the category show returns which are 1 to 2 percentage points poorer than DSP BlackRock Balanced Fund returns of 15.72%.


Since its launch in 1999, DSP Balanced Fund has consistently yielded good performance. Its long-term track record of over 17 years is strong and solid, both in comparison to its benchmark and in absolute terms. Moreover the fund is from one of the top AMCs in the country, i.e., DSP BlackRock Mutual Fund. The fund is not only popular with investors but is also one of the top performing balanced funds.

The dynamic allocation of assets between debt and equity in DSP Balanced Fund offers a unique combination of low-risk gains from fixed income class of assets and equities which offer potential of increased returns. As mentioned above, 65 to 75 percent of the assets typically get invested into an actively well-managed portfolio of diversified equity, while the remaining is invested in short term government bonds, floating rate papers, and other fixed income investments. This helps offset risk of interest rate changes as well as minimizes credit. It is due to such shrewd investment that the fund has managed to beat the VR-Hybrid Equity Index during most years of the past decade, except during the unpredictable and volatile markets of 2008, 2013, and 2011.

DSP Balanced Fund can be a good option for investors who seek regular income for lump-sum investments with moderate risk during post retirement time period.

Should I sell, buy, or hold?

DSP BlackRock Balanced Fund is a fund which offers increased payoffs relative to the amount of risks involved. Its performance has been consistent and strong for many years, thus making it one of the market leaders within its category. We give it our approval and our suggestion to all investors is – “Invest”


Excellent Fund Manager
Excellent Fund Size
Excellent Fund House
Excellent Performance
Good Performance Consistency


High Expense Ratio

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