The BSE Sensex Next 30 Index includes companies that are not part of the BSE SENSEX but represent significant market capitalization and potential for future growth. This index brings a differentiation by focusing on the middle segment of the large cap universe. This segment houses some of the fastest growing large cap leaders and challengers but is often under-represented in most existing large cap indices with an allocation of just 10-40%.

The index offers diversification by providing exposure to a broader range of companies, allowing investors to tap into emerging market leaders across various sectors. Financial Services account for only 19% compared to 38% in BSE Sensex, while Consumer Discretionary and Commodities contribute 18% each. The index also maintains meaningful exposure to Energy (10%), Healthcare (10%), FMCG (8%), and Industrials (8%), providing investors access to a well-diversified portfolio of quality large-cap companies. *

As of 31-Dec-2024, the BSE Sensex Next 30 Index has delivered annualized returns of 14.4% in the last 10 years and has outperformed BSE Sensex in 7 of the last 10 calendar years. On the flip side, the index has had higher drawdowns historically when compared to BSE Sensex.*

“Currently, the large cap segment seems to be better placed in terms of risk versus reward and our new launch offers exposure to a differentiated pocket within this segment. Companies part of BSE Sensex Next 30 Index have historically been strong wealth creators, with 20 stocks graduating up to become part of the BSE Sensex in the last decade. Given its low overlap with other major large cap indices, this fund is suitable for all investors with a long-term investment horizon including those who have already invested in other large cap index funds and now want to have a little different exposure,” said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Asset Managers.

The New Fund Offer (NFO) for the DSP BSE SENSEX Next 30 Index Fund and DSP BSE SENSEX Next 30 ETF will be open from January 10 to January 24, 2025. Investors can choose between lump-sum investments or systematic investment plans (SIPs) to align with their financial goals.

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Mumbai, November 26, 2024: DSP Mutual Fund has announced the launch of the DSP Business Cycle Fund, an open-ended equity following business cycles-based investing theme. This fund provides investors with the opportunity to invest across various market capitalizations, including large, mid and small cap companies. The investment strategy focuses on dynamically allocating assets to industries and sectors that exhibit strong growth potential, improving fundamentals, and attractive valuations.

The DSP Business Cycle Fund employs a framework-driven approach to select industries and companies with high growth or turnaround potential. It allows for active allocation to sectors during upcycles while also implementing cash calls and other risk management strategies. By focusing on identifying strong industry cycles, the fund offers an unconstrained investment approach across market capitalizations, enabling investors to participate in growth opportunities regardless of company size.

The fund categorizes its investment universe into broader sectors and evaluates them at the industry level. It aims to identify industries that are at the bottom of their cycle with potential for significant growth, trading at low valuations compared to benchmarks. Additionally, the fund utilizes dedicated forensic analysts to exclude companies with poor corporate governance, even if they show strong growth prospects.

In terms of risk management, the fund incorporates various strategies including portfolio hedging through put options and arbitrage opportunities. Furthermore, it maintains the flexibility to invest up to 10% of its portfolio in Real Estate Investment Trusts (REITs) or Infrastructure Investment Trusts (InvITs) when equity market opportunities are limited.

“Timing entry and exit of themes can be tricky for investors on their own and may sometimes lead to errors. Redeploying capital after exiting a sector also calls for a thorough evaluation. DSP Business Cycle Fund is strategically designed to navigate through different phases of business cycles while managing risks effectively. We believe this fund will provide investors with a unique opportunity to capitalize on changing market dynamics,” said Charanjit Singh, Fund Manager, DSP Mutual Fund.

The New Fund Offer (NFO) for the DSP Business Cycle Fund will open for subscription on November 27, 2024, and will close on December 11, 2024.

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Mumbai, August 13, 2024: DSP Mutual Fund has launched India’s first ever Nifty Top 10 Equal Weight Index Fund & ETF, which invests equally in top 10 Indian companies in Nifty by free float market capitalization. The DSP Nifty Top 10 Equal Weight Index Fund & DSP Nifty Top 10 Equal Weight ETF aims to capitalize on the relatively better valuations of Top 10 stocks compared to Nifty 50 & Nifty 500 based on metrics like p/e ratio, return on equity and return on assets ratios.

Nifty Top 10 Equal weight index has outperformed Nifty 50 Index & Nifty 500 Index on long term as well as rolling basis across different time periods. Nifty Top 10 Equal Weight Index has outperformed the broader market in 9 out of 16 years*. Currently, Top 10 companies are well placed as the weight of top 10 stocks as % of total market capitalization is at an all-time low. Top 10 stocks have also underperformed in the last 4 years vs other broader indices/ active funds. However, data** suggests that when the three-year historical alpha is negative, the forward alpha for the Nifty Top 10 Equal Weight Index tends to be positive, indicating potential for a turnaround.

In terms of portfolio quality, The Nifty Top 10 Equal Weight Index has 1.5 times higher Return on Equity than the Nifty 500 Index**. Based on FY 2024 data, ~49% of profits of Nifty 50 stocks are contributed by the constituents of Nifty Top 10 Equal weight Index.

The New Fund Offer for DSP Nifty Top 10 Equal Weight Index Fund & DSP Nifty Top 10 Equal Weight ETF will open for subscription on August 16^th, 2024, and will close on August 30^th, 2024.

“While we have seen increasing level of interest in small and mid-cap stocks, the very large and mega cap stocks appear to be trading at relatively more attractive valuations. Sound investing principles suggest that it is always better to invest where there is a relatively lower valuation and margin of safety. Hence, we are considering an index which will have the largest ten stocks, in an equal weight strategy. The Nifty Top 10 Equal Weight Index can be part of long-term portfolios as it provides exposure to the largest companies which can help to reduce drawdowns during downturns and can also generate better returns over the long term,” said Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.

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Mumbai, May 15, 2024: DSP Mutual Fund announced the launch of  DSP Nifty Bank Index Fund, an open-ended scheme tracking Nifty Bank Index. The Fund offers investors an opportunity to get exposure to the 12 most liquid and large Indian banking stocks through a single fund. Nifty Bank Index is diversified with a composition of private as well as public sector banks.

Historically, the Nifty Bank Index has delivered much better long-term returns compared to the broader Nifty 50 Index. Since January 2000, the Nifty Bank Index has grown 67 times compared to the Nifty 50 which grew 21 times over the same period.* However, the Nifty Bank Index is currently witnessing the longest stretch of underperformance compared to the Nifty 50 on a 5-year rolling basis which has led to it being relatively better placed in terms of sector valuations versus their own historical averages as well as relative to other sectors.

Key financial metrics for banks like return ratios and capital adequacy have also been improving steadily. Return on Assets (RoAs) of Indian banks have improved over 3 times from the lows of 2018**.  NPAs are also at one of the lowest levels. With the sector trading at just a 5% premium to its 10-year average price-to-book multiple, and NPAs now at multi-year lows***, it offers an attractive entry point for investors to benefit from the banking sector’s likely resurgence.

The New Fund Offer for DSP Nifty Bank Index Fund will open for subscription on May 15^th 2024, and will close on May 27^th, 2024.

“A robust banking system is the key to economic growth and development, especially for a fast-growing country like India. At DSP, we endeavor to bring the right products at the right time for our investors. We recommend DSP Nifty Bank Index Fund to investors with longer time horizons, especially based on the long-term performance of the Nifty Bank Index,” said Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.

“DSP is a serious player in the Passive Investments segment with a dedicated investment team as well as business team. We are gradually expanding our product range and with this launch we will have 22 products available for your investment allocation across all asset classes – Equity, Debt, Commodities, and the entire market with a wide range of products of index funds, ETFs and rules based smart beta products,” said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund.

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