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NFO Alert: DSP Mutual Fund launches India’s first Nifty Top 10 Equal Weight ETF and Index Funds
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4 min read | Updated on August 16, 2024, 18:51 IST
SUMMARY
DSP Mutual Fund introduced the DSP Nifty Top 10 Equal Weight ETF and Index Fund, India's first funds tracking the Nifty Top 10 Equal Weight Index. Both funds aim to mirror the performance of the index with some tracking error and are currently in the NFO period from August 16 to August 30, 2024.
NFO Alert: DSP Mutual Fund launches India’s first Nifty Top 10 Equal Weight ETF and Index Funds
DSP Nifty Top 10 Equal Weight ETF
DSP Mutual Fund has launched the DSP Nifty Top 10 Equal Weight ETF, an open-ended scheme aiming to replicate the Nifty Top 10 Equal Weight Index's returns. This ETF is currently in its New Fund Offer (NFO) period, starting August 16 and ending August 30, 2024.
The minimum investment for this ETF is ₹5,000. It is important to note that there is no exit load for Creation Unit Size redemptions by Market Makers or Large Investors. However, for other unit sizes, the ETF cannot be directly redeemed from the fund and must be sold on the stock exchange.
Objective of Scheme: The Scheme seeks to provide returns that, before expenses, correspond to the total return of the underlying index (Nifty Top 10 Equal Weight TRI), subject to tracking errors. There is no assurance that the investment objective of the Scheme will be achieved.
DSP Nifty Top 10 Equal Weight Index Fund
DSP Mutual Fund has also introduced the DSP Nifty Top 10 Equal Weight Index Fund, an open-ended scheme tracking the Nifty Top 10 Equal Weight Index. Similar to the ETF, this fund is in its NFO phase from August 16 to August 30, 2024.
Unlike the ETF, the index fund has no exit load, even for switches between Direct and Regular Plans. The minimum investment for this fund is significantly lower at ₹100.
Objective of Scheme: The investment objective of the Scheme is to generate returns that are commensurate with the performance of the Nifty Top 10 Equal Weight Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be achieved.
Risk-o-meter: (for both schemes)
Funds Allocation (for both Schemes)
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) |
|---|---|---|
| Equity and Equity Related Securities constituting Nifty Top 10 Equal Weight Index, the Underlying Index | 95 | 100 |
| Cash and Cash Equivalents | 0 | 5 |
Who should invest in this fund?
This NFO of the DSP Nifty Top 10 Equal Weight ETF and Index fund are suitable for investors who are seeking long-term capital growth and investment in equity and equity-related securities covered by the Nifty Top 10 Equal Weight Index, subject to tracking error.
Benchmark
The performance of the DSP Nifty Top 10 Equal Weight ETF and Index fund will be benchmarked to the performance of the Nifty Top 10 Equal Weight TRI.
Peer Fund Schemes
| Scheme Name | AUM (Crore) | Expense Ratio (%) | 1 Year Returns (%) | 3 Years Returns (%) | 5 Years Returns (%) | Since Launch Ret (%) |
|---|---|---|---|---|---|---|
| HDFC Nifty 100 Equal Weight Index Fund | 217.57 | 0.8 | 46.19 | - | - | 22.27 |
| Sundaram Nifty 100 Equal Weight Fund | 85.75 | 1.03 | 45.21 | 19.23 | 21.76 | 11.99 |
| HDFC NIFTY50 Equal weight Index Fund | 1225.64 | 0.86 | 35.32 | - | - | 19.48 |
| DSP Nifty 50 Equal Weight Index Fund | 1557.01 | 1 | 35.14 | 19.02 | 21.98 | 14.13 |
| ABSL Nifty 50 Equal Weight Index Fund | 284.2 | 1.02 | 34.98 | 18.69 | - | 18.82 |
| UTI Nifty50 Equal Weight Index Fund | 81.08 | 1.03 | 34.92 | - | - | 34.28 |
| ICICI Pru Nifty50 Equal Weight Index Fund | 72.57 | 1 | 34.82 | - | - | 26.14 |
| SBI Nifty50 Equal Weight Index | 954.546 | 1.02 | - | - | - | 11.56 |
| DSP Nifty 50 Equal Weight ETF | 234.99 | 0.3 | 36.13 | - | - | 17.47 |
| SBI Nifty50 Equal Weight ETF | - | - | - | - | - | -0.43 |
Who Manages the Scheme?
Anil Ghelani (AUM - ₹4,597 crore, Schemes – 20, Experience - 25 years)
Anil joined DSP Investment Managers in 2003. He has rich experience of over 25 years. From May 2019 onwards, he is the fund manager and head of Passive Investments & Products in DSPIM. Anil is a Chartered Financial Analyst (CFA Institute USA) and Chartered Accountant (ICAI India).
Diipesh Shah (Experience – 22 Years)
Shah is a B Com, ACA, Candidate of the CFA Program, CFA Institute USA, Level I Cleared Before joining DSP Mutual Fund, he worked with JM Financial, Centrum Broking, IDFC Securities, ICICI Securities and IIFL Capital Pte Ltd Singapore.
About The Author
