DSPAMC - DSPN50ETF

About DSP Nifty 50 ETF (NIFTY50ADD)

• The DSP Nifty 50 ETF is an Exchange Traded Fund offered by the DSP Mutual Fund House.
• It includes stocks from some of the biggest companies in India based on their market capitalisation.
• The scheme was launched on December 17, 2021
• The ETF, managed by Anil Ghelani and Diipesh Shah, trades under the ticker symbol NIFTY50ADD.
• As of July 31, 2024, the fund’s assets under management (AUM) stood at ₹424.78 crore.
• Investment in the ETF can be made via a demat account with a registered broker.
• DSP Nifty 50 ETF units can be bought and sold during the usual trading window, just like equity shares.

Investment objective and benchmark

• The ETF aims to replicate the performance of equity securities part of its underlying index.
• DSP Nifty 50 ETF is benchmarked against the Nifty Index, which includes top stocks from all the key sectors of the Indian economy.
• The DSP Nifty 50 ETF is a very high-risk investment instrument, suited for investors seeking long-term capital growth and exposure to equities and equity-related instruments.
• The scheme diversifies funds across key performing sectors limiting the sectoral risks for the investors.
• With the help of this ETF, investors can diversify their investment portfolios and take part in the long-term growth of the Indian economy in a seamless manner.
• The ETF includes stocks of the top 50 companies based on market capitalisation, making it a more stable investment option
• Investors should also anticipate that the fund’s returns will be marginally lower than those of the index, mostly because of the inherent tracking errors and expense ratio of these kinds of products.

Asset allocation and portfolio composition

• The DSP Nifty 50 ETF has allocated 99.62% of the available funds for equity investment. The remaining 0.38% is invested in other instruments, including cash and debt.
• The scheme has diversified its funds to companies across sectors.
• It has invested 33.10% of the funds in financial, 14.6% in energy, 12.46% in technology and 8.02% in automobile sectors. Further, the ETF has also allocated 7.87% of the funds to consumer staples and 23.94% to other sectors.
• DSP Nifty 50 ETF has predominately invested in giant and large cap firms with an allocation of over 80% of the funds to them.
• The top company holdings make-up 56.44% of the ETF's asset allocation.

Here's a list of 10 company holdings in the DSP Nifty 50 ETF as of June 30, 2024.

• HDFC Bank Ltd.: 11.91%
• Reliance Industries Ltd.: 9.94%
• ICICI Bank Ltd.: 7.92%
• Infosys Ltd.: 5.31%
• Larsen & Toubro Ltd.: 3.89%
• Tata Consultancy Services Ltd.: 3.71%
• ITC Limited: 3.69%
• Bharti Airtel Ltd.: 3.63%
• Axis Bank Ltd.: 3.38%
• State Bank Of India: 3.06%

The fund has delivered a 28.53% return over the last year as of Augusy 19, compared to 28.6% earnings during the period.

Since its inception, the ETF has posted a CAGR of 16.01%.