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Economic Times
3 days ago
- Business
- Economic Times
NFO Alert: DSP Mutual Fund launches index funds on IT and Healthcare sectors
The IT and healthcare sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. DSP Mutual Fund has launched two new index funds — the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund. These offerings provide investors a strategic avenue to gain exposure to the IT and healthcare sectors, both known for their relative resilience in volatile equity markets. The new fund offer, or NFO, for both funds, is open for subscription and will close on June 16. The DSP Nifty IT Index Fund aims to replicate/track the Nifty IT Index and would be investing in the top 10 IT companies by free float market capitalisation. The Indian IT sector has demonstrated smooth earnings growth with relatively low earnings variability, which has helped to reduce earnings surprises. Over the last 12 years, the Nifty IT index has delivered consistent earnings growth, outperforming many other sectors. While the IT sector has underperformed the broader market in recent years, historical cycles suggest potential for a turnaround, making this an opportune moment for investors to consider sector-focused exposure. Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? The DSP Nifty Healthcare Index Fund aims to replicate or track the Nifty Healthcare Index, investing in the top 20 healthcare companies based on free-float market capitalisation. Notably, India's healthcare sector accounts for a relatively small share of the country's total market capitalisation compared to developed and emerging markets. This indicates significant growth potential, supported by expanding healthcare infrastructure, rising insurance penetration, and ongoing medical innovation. "The launch of the DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund offers investors a balanced approach to participate in sectors that combine growth with resilience. In uncertain market environments, defensive sectors like IT and healthcare have seen lower drawdowns, with the potential to deliver attractive returns,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund.'By strategically including low-beta sectors such as Information Technology and Healthcare, investors can construct a more resilient and efficient portfolio, which may help them optimise returns and effectively manage market risk. Defensive sectors are currently underrepresented in broader indices, and history shows that when underweight, sectors like IT and Healthcare tend to outperform the market over the following year. Our disciplined passive management approach aims to closely track these sectors, helping investors capture structural growth with lower volatility,' said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund Defensive sectors such as Information Technology (IT) and Healthcare have historically exhibited low beta relative to the broader equity market, meaning they are less affected by market downturns, economic crises, or geopolitical events. For instance, during the Global Financial Crisis (Jan – Oct 2008) and the Covid-19 pandemic (Jan – March 2020), Nifty Healthcare and Nifty IT indices outperformed the broader Nifty 500 Index by experiencing lower drawdowns and quicker sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. To put this in context of numbers, ~ 96% of total revenues for the companies in the Nifty IT Index come from various global markets other than India. Notably, 52% of the total revenues for companies in the Nifty Healthcare Index are derived from global markets, compared to just 25% for companies in the Nifty 50 Index.
Time of India
3 days ago
- Business
- Time of India
NFO Alert: DSP Mutual Fund launches index funds on IT and Healthcare sectors
DSP Mutual Fund has launched two new index funds — the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund . These offerings provide investors a strategic avenue to gain exposure to the IT and healthcare sectors, both known for their relative resilience in volatile equity markets. The new fund offer, or NFO , for both funds, is open for subscription and will close on June 16. The DSP Nifty IT Index Fund aims to replicate/track the Nifty IT Index and would be investing in the top 10 IT companies by free float market capitalisation. The Indian IT sector has demonstrated smooth earnings growth with relatively low earnings variability, which has helped to reduce earnings surprises. Over the last 12 years, the Nifty IT index has delivered consistent earnings growth, outperforming many other sectors. While the IT sector has underperformed the broader market in recent years, historical cycles suggest potential for a turnaround, making this an opportune moment for investors to consider sector-focused exposure. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? The DSP Nifty Healthcare Index Fund aims to replicate or track the Nifty Healthcare Index, investing in the top 20 healthcare companies based on free-float market capitalisation. Notably, India's healthcare sector accounts for a relatively small share of the country's total market capitalisation compared to developed and emerging markets. This indicates significant growth potential, supported by expanding healthcare infrastructure, rising insurance penetration, and ongoing medical innovation. Live Events "The launch of the DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund offers investors a balanced approach to participate in sectors that combine growth with resilience. In uncertain market environments, defensive sectors like IT and healthcare have seen lower drawdowns, with the potential to deliver attractive returns,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund. 'By strategically including low-beta sectors such as Information Technology and Healthcare, investors can construct a more resilient and efficient portfolio, which may help them optimise returns and effectively manage market risk. Defensive sectors are currently underrepresented in broader indices, and history shows that when underweight, sectors like IT and Healthcare tend to outperform the market over the following year. Our disciplined passive management approach aims to closely track these sectors, helping investors capture structural growth with lower volatility,' said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund. Also Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund Defensive sectors such as Information Technology (IT) and Healthcare have historically exhibited low beta relative to the broader equity market, meaning they are less affected by market downturns, economic crises, or geopolitical events. For instance, during the Global Financial Crisis (Jan – Oct 2008) and the Covid-19 pandemic (Jan – March 2020), Nifty Healthcare and Nifty IT indices outperformed the broader Nifty 500 Index by experiencing lower drawdowns and quicker recoveries. These sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. To put this in context of numbers, ~ 96% of total revenues for the companies in the Nifty IT Index come from various global markets other than India. Notably, 52% of the total revenues for companies in the Nifty Healthcare Index are derived from global markets, compared to just 25% for companies in the Nifty 50 Index.
Time of India
06-05-2025
- Business
- Time of India
A passive Nifty investment strategy to beat market returns
Mumbai: A low-cost investment strategy that aims to benefit from both narrow and broad-based equity rallies could generate market-beating returns. The plan, better suited for seasoned investors, involves switching between two Nifty index funds -- Nifty Top 10 Equal Weight, and Nifty 50 Equal Weight -- depending on market conditions. #Pahalgam Terrorist Attack Pakistan's economy has much more to lose than India's due to the ongoing tensions, warns Moody's Ratings The day Pakistan got the power to poke India FM Sitharaman meets ADB chief and Italian FM, discusses economic issues; no mention of Pakistan If the gains in Nifty are driven by a select set of stocks, investors could consider the Top 10 Equal Weight index, while investing in the Nifty 50 Equal Weight index is suitable in times of a broad-based rally, says Anil Ghelani, head of passive investments and products, DSP Mutual Fund . A study by DSP Mutual fund showed investors can benefit from phases of 'polarisation' and 'depolarisation' by adopting a simple strategy of buying these index funds. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » When the rally is narrow, with the top 10 stocks of the Nifty 50 starting to outperform the remaining 40 stocks of the Nifty 50, it is considered a polarised market. On the other hand, when the top 10 stocks underperform the remaining 40 stocks in the Nifty 50 Index, the phase is termed depolarisation. This strategy could make higher returns than merely investing in a single index. DSP's study showed investors, who followed this strategy could have generated returns of 14.6% every year over the February 2007 - April 2025 period. In comparison, investments in the Nifty 50 Equal Weight Total Returns Index (TRI) alone would have returned 12.9% every year, while it would be 13.3% for the Nifty Top 10 Equal Weight TRI, and 12.2% for the Nifty 50 TRI. Live Events "If you are able to tactically time the entry into these funds, there is scope for outperformance in such passive index strategies," says Prateek Sinha, director, Deep MFD, a wealth management firm. DSP said the Nifty has entered a polarisation phase beginning November 2024, where the top 10 stocks are outperforming the broader markets, and investors would be better off investing in the Top 10 Equal Weight Index. During the 15 months between September 2023 and November 2024, the market had been in a depolarisation phase. For deciding their entry points into each of these indices, investors must track the ratio of the Top 10 Equal Weight Index to the 50 Equal Weight Index. Whenever the ratio is above its 12-month moving average, it means that the Nifty Top 10 Equal Weight Index has started to outperform. When this ratio moves below the 12-month moving average, investors could consider the Nifty 50 Equal Weight Index. Such investment strategies could work well for investors with sophisticated systems. "Family offices or rich investors can use such strategies, where they monitor the changing trends and are quick to act," says S Shankar, certified financial planner at Credo Capital. Sinha, of Deep MFD, said retail investors, especially those who do not track the market regularly, might find it difficult to capture such changing trends.
Business Mayor
28-04-2025
- Business
- Business Mayor
NFO Alert: DSP Mutual Fund launches Silver ETF Fund of Fund
DSP Mutual Fund has launched its new open-ended scheme, the DSP Silver ETF Fund of Fund, designed to offer investors a convenient and structured way to gain exposure to silver through the mutual fund new fund offer or NFO of the scheme is open for subscription and will close on May 9. The scheme will reopen for continuous sale and repurchase on May 19. Also Read: 19 gold ETFs, one glittering choice: Here's how to pick the best one The scheme will be benchmarked against Domestic Price of Physical Silver (based on London Bullion Market Association (LBMA) Silver daily spot fixing price and will be managed by Anil Ghelani and Diipesh Shah. This Fund of Fund will primarily invest in units of DSP Silver ETF, providing returns that closely correspond to the performance of physical silver in domestic markets, according to a release by the fund house. Silver as a commodity plays a crucial role in various industries such as electronics, automotive, power, and jewelry, with demand expected to rise due to the global shift towards renewable and cleaner energy sources. Supply growth for silver has been limited, and recent years have shown a consistent supply year 2025 could be the fifth year running where demand for silver could be more than the supply. And this supply deficit could be more than 20% of annual demand. In the past, when such deficits occurred, even a small incremental increase in investment demand for silver can lead to a rise in investors may also benefit from currency depreciation, as silver is priced in USD. Over time, silver prices in INR have outperformed those in USD, providing an additional advantage when the rupee weakens, said the release. The DSP Silver ETF Fund of Fund offers the advantage of owning the metal in a convenient digital form without the requirement for a demat account to transact. It also presents a systematic way to invest in Silver via SIPs along with the flexibility of redeeming the units without any lock-in period. Also Read | Global mutual funds recover post Tariff lows. How long will momentum sustain? 'During geopolitical tensions and uncertainties, precious metals like silver and gold present a safe haven for investors. Precious metals are also a good inflation hedge for investors who fear that trade wars and tariff tensions would cause high inflation. But besides such investment demand, more than 50% of the annual demand for Silver is for industrial use. Such industrial use of silver in EVs, solar panels and 5G networks is likely to grow even more, as nations across the world move towards cleaner energy and newer technologies,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund. 'If we see the current Gold/Silver ratio and compare it to long term history, the prices of silver appear relatively undervalued, which could indicate a potential for silver to outperform. However, investors should expect fluctuations in short-term returns,' he added. 'With the launch of DSP Silver ETF Fund of Fund, we are making it even simpler for investors to access silver as an asset class through the mutual fund platform. Our aim is to provide a transparent, liquid, and cost-effective solution for those seeking diversification and long-term growth potential through commodities,' said Diipesh Shah, Fund Manager of DSP Silver ETF Fund of Fund. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) READ SOURCE businessmayor April 28, 2025
