Synopsis: The DSP TIGER Fund, focused on infrastructure stocks, is making a comeback. While recent gains are promising, experts advise a cautious, long-term investment approach due to the fund’s past volatility and inherent risks.
The DSP TIGER Fund is making a comeback with a renewed focus on infrastructure stocks, which have seen significant appreciation recently. However, experts advise caution and a long-term, systematic investment approach due to the fund's inherent risks and past volatility.
A Historical Perspective
Launched in June 2004, the DSP TIGER Fund quickly became a standout performer, capitalizing on the massive infrastructure rally from 2003 to 2007. The fund, which stands for "The Infrastructure, Economic Reforms and Growth Fund," attracted huge inflows and saw substantial gains during this period.
However, the global recession of 2008 hit the fund hard, leading to a 58% crash. By November 2010, the market had staged a comeback, and the DSP TIGER Fund’s NAV was within 10% of its peak. Unfortunately, this recovery was short-lived, and the fund’s performance remained volatile.
Current Outlook
The renewed interest in the DSP TIGER Fund is driven by the recent appreciation in infrastructure stocks. This has led to a significant rebound in the fund's performance. However, given its history, experts suggest that investors approach with caution.
Investment Strategy
For those considering the DSP TIGER Fund, a systematic investment plan (SIP) is recommended. This approach can help mitigate risks associated with market volatility and allow investors to take advantage of potential long-term growth in the infrastructure sector.
Key Takeaways
- Rebound: The DSP TIGER Fund has rebounded strongly with a focus on infrastructure stocks.
- Caution Advised: Experts recommend a cautious approach due to the fund's past volatility and inherent risks.
- Long-Term Strategy: A systematic investment plan (SIP) is suggested for potential long-term gains.
- Historical Volatility: The fund's performance during the 2008 recession is a reminder of the potential risks involved.
The DSP TIGER Fund’s resurgence is a reminder of its potential but also its historical volatility.
Investors should weigh the risks and consider a long-term, systematic approach to maximize potential gains while mitigating risks.
