Dsp Merrill Equity Fund Nav Drops To Rs 20.65

DSP Merrill Lynch Equity Fund has posted negative returns of 14.9 per cent for the four months to April 2000. In comparison, the BSE Sensex fell 7 per cent while the S&P CNX Nifty dipped by 5 per cent. The fund's net asset value slumped to Rs 20.65 as on April 28, 2000, from Rs 27.21 on December 31, 2000. During the period, its total net assets declined to Rs 62.52 crore (Rs 75.95 crore). The fall in market price of major information technology (IT) stocks is one of the reasons for the erosion in the fund's NAV. The fund's exposure to IT sector is as high as 39 per cent. Besides, the decision to increase exposure in old economy stocks did not pay well. In the four months to April 2000, the fund increased its investment in old economy sectors.