This is an open-ended scheme replicating or tracking Nifty50 Equal Weight Index
| Good to know Nifty50 Equal Weight Index This index represents an alternative weightage strategy to Nifty50. It includes the same companies as Nifty50. But unlike the Nifty50 index, wherein the weightage of each company’s stock varies, here all the constituents will hold equal weightage. Simply put, it measures performance of Nifty50 companies by allocating equal weightage to all of them. |
Investment objective
The fund will invest in top 50 companies in the country, which are a part of the Nifty50 Index. The scheme will not carry any risk of concentration as equal weightage will be given to all the companies of the Nifty50 Index.
For instance, in the Nifty50 Index, the top ten stocks have a weightage of 58.3%. But, the same top 10 stocks in the Nifty50 Equal Weight Index have a weightage of 19.7%. This means that the DSP Nifty50 Equal Weight ETF would spread the exposure equally.
Also, since its inception in 1999, the Nifty50 Equal Weight Index has outperformed the Nifty50 Index. Of the last 21 calendar years, the Nifty50 Equal Weight Index has given better returns than the Nifty50 index 12 times.
Besides having the potential to outperform, this exchange traded fund (ETF) has other benefits such as being low cost, transparent and providing the simplicity of buying and selling units on the exchanges.
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Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Equity and equity related securities of companies constituting Nifty50 Equal Weight Index, the underlying index | 95 | 100 | Medium to high |
| Cash and cash equivalents/money market instruments with residual maturity not exceeding 91 days | 0 | 5 | Low to medium |
Scheme details
| Name | DSP Nifty50 Equal Weight ETF |
| Type | An open-ended scheme replicating/tracking Nifty50 Equal Weight Index |
| Category | Equity |
| Benchmark | Nifty50 Equal Weight |
| Entry/exit load | Entry: Nil Exit Load: Nil |
| Fund Manager | Anil Ghelani and Diipesh Shah |
| Minimum application amount | ₹5,000 and in multiples of ₹1. |
| Expense ratio | Up to 1% |
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| This product is suitable for investors who are seeking*: | Riskometer |
| -Long-term capital growth -Investment in equity and equity related securities covered by Nifty50 Equal Weight Index, subject to tracking error. |
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by DSP Asset Management Company. To read the entire document, click here.
Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.