NFO Alert: Asset management company DSP Mutual Fund has launched India’s first Nifty Top 10 Equal Weight Index Fund and ETF. It invests equally in the top 10 Indian companies based on free float market capitalization in Nifty.
DSP Nifty Top 10 Equal Weight Index Fund and DSP Nifty Top 10 Equal Weight ETF aim to take advantage of the comparatively better valuation of the top 10 stocks compared to Nifty 50 and Nifty 500 based on metrics such as PE ratio, return on equity, and return on assets.
DSP Nifty Top Ten Equal Weight Index Fund and DSP Nifty Top Ten Equal Weight Index ETF have opened for initial investment on 16 August 2024 and will close on 30 August 2024. You can start investing in DSP Nifty Top Ten Equal Weight Index Fund with a minimum of Rs 100. Whereas the minimum investment in DSP Nifty Top Ten Equal Weight Index ETF is Rs 5000.
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Anil Ghelani, Head of Passive Investments and Products and CFA, DSP Mutual Fund, says, investors are increasingly buying small and midcap stocks. At the same time, large and megacap stocks are now seen at more attractive valuations. Solid investment principles suggest that it is always better to invest where there is relatively low valuation and security margin. Therefore, we have considered an index of the 10 largest stocks in a similar premium strategy.
He says, Nifty Top Ten Equal Weight Index can be a part of the largest portfolio, as it gives a good opportunity to invest in big companies. It can also help in reducing the fall in investment valuation during recession and gives better returns in the long term.
(Disclaimer: Here are the details of the NFO. This is not an investment advice. Investment in mutual funds is subject to market risks. Consult your advisor before investing.)
