DSP India T.I.G.E.R. Reg IDCW-P

DSP India T.I.G.E.R. Fund is an open-ended equity scheme that is primarily based on companies connected with infrastructure growth and economic development activities. The portfolio mainly comprises equity and equity-related instruments across sectors such as engineering, construction, industrial manufacturing, utilities, and capital goods, along with other sectors that may benefit from infrastructure expansion and structural economic developments. A smaller allocation may be maintained in cash or money market instruments to support liquidity requirements. The scheme may be suitable for investors seeking infrastructure-oriented exposure within the equity market while accepting a very high risk profile. The scheme is benchmarked against the S&P BSE India Infrastructure TR INR.

In the IDCW Payout Option, any available distributable surplus may be distributed to investors as cash. The NAV is reduced by the amount distributed on the ex-IDCW date. IDCW is subject to the availability of surplus and trustee discretion and is not guaranteed

Pros

The scheme follows a theme-based investment framework related to infrastructure and development-oriented sectors. It has been structured for investors who prefer exposure to businesses associated with industrial expansion and economic activity. The focused mandate provides clarity regarding portfolio positioning.

• Participation in development-linked sectors
  The portfolio includes investments in companies that operate in areas such as engineering, capital goods, and construction activities. These sectors are connected with infrastructure creation and industrial development.
• Exposure to supporting industrial activities
  Investment is made in businesses that are involved in utilities, project support, and operational services. This broadens exposure across multiple layers of infrastructure-related economic activity, including supporting services and enabling industries.
• Clearly identified thematic allocation
  The investment approach remains aligned with infrastructure and allied industries. This allows investors to understand how the portfolio is distributed across sectors within the theme. The fund’s thematic mandate also provides transparency regarding its investment focus.
• Equity-oriented investment structure
  The scheme allocates to equity and equity-related instruments. This clearly indicates its focus on development-linked businesses. The fund aligns with market-related participation throughout different economic phases. A limited allocation may also be held in cash or liquid instruments for liquidity management.

Cons

The scheme maintains a concentrated allocation within infrastructure and related sectors. It carries a very high risk profile and may not align with investors seeking lower variability or wider diversification over shorter investment horizons. The portfolio may be significantly influenced by developments affecting infrastructure-linked industries and related market sentiment. Its concentration across key holdings and sectors may further amplify this sensitivity.

• Concentrated exposure to infrastructure-oriented businesses
  The investment universe is narrower than that of diversified equity funds, since it consists primarily of companies that are dependent on infrastructure and development activities. This, in turn, increases sensitivity to shifts within the sector and broader industry-related developments.
• Dependence on execution and implementation cycles
  These companies often operate through execution-driven models. Project schedules and implementation stages may change over time. Delays in project approvals, financing availability, or execution timelines may also affect business performance.
• Exposure to sector-linked operating environments
  Volatility within infrastructure-related industries tends to influence the portfolio. As a result, variations in operating conditions or external factors can affect company performance and portfolio returns over different market cycles.
• Presence of long planning and funding cycles
  Typically, businesses in these areas have extensive planning timelines and major capital needs. Changes in funding availability, capital costs, or project execution schedules may influence operational activity and investment outcomes within the portfolio.