DSPAMC - DSPITETF

About DSP Nifty IT ETF

• DSP Nifty IT ETF is an exchange-traded fund offered by the DSP Mutual Fund House. It comprises top stocks from the information technology sector in India.
• The ETF was launched on July 7, 2023.
• The scheme comprises stocks of companies that are market leaders in the information technology sector.
• The total assets under management (AUM) in this ETF stood at ₹38.2 crores as of June 30, 2024.
• Anil Ghelani and Diipesh Shah have been the fund managers for DSP Nifty IT ETF since its inception.
• Investors can trade in DSP Nifty IT ETF through their demat account registered with a recognised broker or financial institution.
• Investments in DSP Nifty IT ETF can be made directly by placing buy orders for the ETFs through the broker during the trading hours of the stock market.

Investment Objective & Benchmark

• The DSP Nifty IT ETF aims to offer returns that replicate the total return of the stocks represented by the underlying index.
• The ETF is benchmarked against the Nifty IT index which captures the performance of the IT segment.
• The IT revolution has been at the forefront of India's growth story since the 1990s. DSP Nifty IT ETF enables investors to register gains from the top 10 most liquid and large-cap IT stocks on the Nifty IT Index.
• The Nifty IT index has outperformed the Nifty 50 Index consistently over the last few years.
• The majority of the revenue of Indian IT companies is dependent on the global economy, limiting the investor's exposure to India-specific risk.
• DSP Nifty IT ETF mirrors the performance of Nifty IT TRI which invests predominantly in large-cap IT stocks, preventing the portfolio from getting affected due to risks by small-sized IT companies.

Asset Allocation & Portfolio Composition

• DSP Nifty IT ETF allocates 99.19% of the funds to equity. The remaining 0.81% of funds are invested in debts and cash.
• The entire equity allocation of the ETF is invested in the IT sector. DSP Nifty IT ETF includes 9 holdings of the IT software segment and one from the IT services.
• The ETF invests funds across market capitalisations, investing 68.10% of funds in giant-cap companies, 15.8% in large-cap and 11.85 % in mid-cap firms. The remaining 4.24% is invested in small-cap companies.
• The top 10 equity holdings in DSP Nifty IT ETF constituted 99.19% of the assets, as of May 2024.

List of list of companies in DSP Nifty IT ETF along with their percentage of net assets:

IT software segment

• Infosys Limited: 26.90%
• Tata Consultancy Services Limited: 25.16%
• Tech Mahindra Limited: 10.49%
• HCL Technologies Limited: 9.48%
• Wipro Limited: 8.31%
• LTIMindtree Limited: 5.81%
• Persistent Systems Limited: 4.74%
• Coforge Limited: 4.09%
• MphasiS Limited: 2.55%

IT services segment

• L & T Technology Services Limited - 1.63%

DSP Nifty IT ETF yielded a return of 29.41% in the past year, as of July 10.