Latest news with #DSPMutualFund
Time of India
4 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.
Mint
15-05-2025
- Business
- Mint
After a glittery rally, gold may be about to make way for stocks
'However, gold prices still have room for improvement with eventual (US) rate cuts on the horizon and continuous central bank buying. Till then, gold can find a key support at the $3080 per ounce level," she said. But gold's geopolitical risk premium is beginning to fade as the ongoing US-China trade negotiations have shown significant progress, noted Apurva Sheth, head of market perspectives and research at Samco Securities. Also read: Early birds report of a steady yet muted Q4 Last week, the US agreed to cut duties on Chinese exports to 30% from 145% for 90 days, while China reduced its tariffs on US goods to 10% from 125% for the same period, signalling an intent to de-escalate and move towards a structured trade agreement. 'This has reduced the need for investors to seek shelter in traditional safe-haven assets like gold," Seth added. In fact, during the latest Mint quarterly market survey, Jay Kothari, lead equity strategist at DSP Mutual Fund, noted that the best way to play gold from hereon is through gold-related equities. Uncertainty's gold Uncertainty defined FY25, marked by shifting policies and global tensions. Gold capitalized on this instability, outshining other asset classes. To be sure, gold returned around 27% in 2024, outperforming every other asset class and marking its ninth consecutive annual gain last year. A couple of ongoing wars, relentless central bank buying – for diversifying reserves and reducing reliance on the US dollar – and a weakening global outlook drew investors to gold, as they faced a spate of uncertainties in the near term. US president Donald Trump's tariff tantrums and the recent rout in the US currency and treasury market further increased the appeal for gold as the only reliable safe haven asset, further fuelling its rally in 2025. Indian investors appear to taking a U-turn from safe haven gold to riskier assets like equities, as green shoots of geopolitical stability begin to emerge across the globe. With the precious metal already delivering returns as high as 25% in the first four months of 2025, experts believe there is limited room for significant upside, especially as global uncertainties begin to wane. This likely explains why domestic gold exchange traded fund (ETF) redemptions reached a one-year high last month. Also read: Banks' Q4 earnings hit an 8-quarter high. But that's not driven by loans Moreover, gold has remained under pressure lately, with prices being very volatile in the last three to four weeks. Going forward, Kaynat Chainwala, associate vice-president of commodity research at Kotak Securities, anticipates a 7-8% correction in gold prices in the short term, driven by easing US-China trade tensions. In India, gold prices touched an all-time high of ₹100,000 per 10g in the retail market last month. The surge in demand for the yellow metal reached a 15-year high in 2024, fuelling its meteoric price rise. Gold demand in the country reached 4,974 tonnes in 2024, mainly driven by jewellery and investment demand, which accounted for 40% and 24% of total gold demand respectively, according to the latest NSE Market Pulse report. Also read: What the market crystal ball sees for the next 3 months While total demand rose 0.6% on a year-on-year basis, albeit on a high base, demand for gold investment rose the highest at almost 25% during the same period. Equities turn? But how long will this heightened investment demand for gold endure? A recent Motilal Oswal Financial Services report highlighted that with domestic equities underperforming, the gold price to Nifty-50 index ratio has already breached its historical median and is now nearing its FY16 peak of 4.2x. Historically, such levels have suggested a higher probability of equities outperforming gold in the future. Could a sustained recovery in equities alter this dynamic? In fact, even though gold has outperformed domestic equities in a one to three-year timeframe, from a very long-term perspective, equites have historically delivered superior returns. Hence, experts are advising caution in investing in gold going forward. 'Investors should invest in a staggered manner as and when gold (prices) falls from here on, instead of going all in. While existing uncertainty around US's trade deals will support gold prices for the next few months, we are expecting a consolidation phase in the near term," said Pranav Mer, vice-president of the equity broking group's commodity and currency research team at JM Financial Services. MCX Gold is likely to consolidate in a range of ₹91,542 to ₹93,034, which is at a 50-62% retracement level of the recent rally from ₹86,710 to ₹99,358, noted Seth from Samco Securities. On booking profits, Mer from JM Financial Services suggested that investors should book profits whenever gold rallies from current levels. In fact, investors began redeeming in March, with gold ETFs seeing their first net outflows in over a year that month. In April, however, redemptions reached a one-year peak at ₹ 1,669 crore.
Economic Times
14-05-2025
- Business
- Economic Times
‘Sovereign stupidity' and currency debasement make gold a smart hedge in volatile times: Sahil Kapoor
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In an exclusive conversation, Sahil Kapoor , Market Strategist and Head of Products at DSP Mutual Fund, shares his sharp take on the ongoing market volatility driven by geopolitical tensions, trade wars, and muted corporate highlights gold's continued strength as both a hedge and a wealth-building asset amid what he terms 'sovereign stupidity' and global currency debasement With valuations stretched across segments and earnings growth under pressure, he advises a cautious and value-focused investment approach while positioning gold and even silver as smart plays in the current macroeconomic landscape. Edited Excerpts –A) The outcome of either event is unknown. What is more certain is that these events are either growth detractors or non-events. In the case of the ongoing trade wars, history shows that there are no winners when trade barriers are the long term, we may see some benefits from tariffs in making certain economies more robust, but their consequences for a world built on global trade are unhealthy. We are not experts on wars or their one thing is clear: for corporate earnings, events such as war can either pose downside risks or be non-events. Investors are better served by remaining cautious, given the valuation backdrop.A) A diversified mix of assets-including domestic and global equities, precious metals, and bonds-is a robust allocation exact proportions should be tailored to individual goals and guided by valuation frameworks for each asset class.A) As of 28th April 2025, 18 Nifty firms have reported their numbers. Sales growth stands at 5%, while profit growth is 4.8%. Nifty firms have now cumulatively reported single-digit profit growth in most of the last four contrast, the Nifty Index's trailing twelve-month price-to-earnings (P/E) ratio is close to 22 times. The return on equity (ROE) for the index is at 15.5%.This valuation mix leaves little on the table in terms of a margin of safety. Corporate earnings remain muted and a cause for concern.A) Gold has been a hedge against global currency debasement and what I have dubbed as 'Sovereign Stupidity'. As per my theoretical model to value Gold, the midpoint of valuations comes close to $ it is very hard to value assets like precious metals and hence it makes sense to remain long in the ongoing Gold bull market and not second guess where it ends. From a risk reward stand point, Silver may offer better odds for investors at this time.A) As of 28th April 2025, Nifty MIDSMALL 400 Index, the SMID focussed index was trading at 33.2 times. Earnings growth for this cohort is in single digits, and it also trades at a 90% premium to world midcap numbers when put in the right context tell you that the margin of safety is missing. Unless valuations become attractive investors should only use a SIP route in this segment and avoid lumpsums and performance chasing.A) Stocks in the BFSI segment, particularly private banks, a few NBFCs, select auto and consumption companies along with the healthcare sectors offers value on a bottoms up basis.Q) How are FIIs viewing Indian markets? We have seen some net buying in the past few sessions, but for the month, FIIs have pulled out more than Rs 13,000 crore from the cash segment of Indian equity markets.A) All investors—whether institutional or retail, domestic or foreign—are broadly return chasers. Our tendency to label investor flows as FII, DII, or SIP can be key impact of FII flows is not on stock market returns per se, but on India's balance of payments. That segment is currently doing fine, but the global trade war has made it more volatile.A) We were valuations focussed and continue to remain so. We may also want to take benefit of cheaper prices if these events and triggers create value in pockets of high quality.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
14-05-2025
- Business
- Time of India
‘Sovereign stupidity' and currency debasement make gold a smart hedge in volatile times: Sahil Kapoor
In an exclusive conversation, Sahil Kapoor , Market Strategist and Head of Products at DSP Mutual Fund, shares his sharp take on the ongoing market volatility driven by geopolitical tensions, trade wars, and muted corporate earnings. Kapoor highlights gold's continued strength as both a hedge and a wealth-building asset amid what he terms 'sovereign stupidity' and global currency debasement . With valuations stretched across segments and earnings growth under pressure, he advises a cautious and value-focused investment approach while positioning gold and even silver as smart plays in the current macroeconomic landscape. Edited Excerpts – Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Q) We are seeing some volatile swings in the markets, thanks to the back-and-forth from Trump on tariffs and now some geopolitical concerns amid tensions between India and Pakistan. How are you looking at all this? A) The outcome of either event is unknown. What is more certain is that these events are either growth detractors or non-events. In the case of the ongoing trade wars, history shows that there are no winners when trade barriers are erected. Over the long term, we may see some benefits from tariffs in making certain economies more robust, but their consequences for a world built on global trade are unhealthy. We are not experts on wars or their outcomes. However, one thing is clear: for corporate earnings, events such as war can either pose downside risks or be non-events. Investors are better served by remaining cautious, given the valuation backdrop. Live Events Q) It looks like we have entered a low-interest-rate environment. What should the asset allocation strategy be for an individual in the age bracket of 30–40 years? A) A diversified mix of assets-including domestic and global equities, precious metals, and bonds-is a robust allocation strategy. The exact proportions should be tailored to individual goals and guided by valuation frameworks for each asset class. Q) What is your take on the results that have come out from India Inc., and what are your expectations for the next few quarters? A) As of 28th April 2025, 18 Nifty firms have reported their numbers. Sales growth stands at 5%, while profit growth is 4.8%. Nifty firms have now cumulatively reported single-digit profit growth in most of the last four quarters. In contrast, the Nifty Index's trailing twelve-month price-to-earnings (P/E) ratio is close to 22 times. The return on equity (ROE) for the index is at 15.5%. This valuation mix leaves little on the table in terms of a margin of safety. Corporate earnings remain muted and a cause for concern. Q) Gold is back in the limelight as it hit the Rs 1 lakh mark in the physical market. Is it no longer just a safe haven but also a money-making machine? It has been outperforming equities for the past couple of years. A) Gold has been a hedge against global currency debasement and what I have dubbed as 'Sovereign Stupidity'. As per my theoretical model to value Gold, the midpoint of valuations comes close to $3800. Moreover, it is very hard to value assets like precious metals and hence it makes sense to remain long in the ongoing Gold bull market and not second guess where it ends. From a risk reward stand point, Silver may offer better odds for investors at this time. Q) How should one be looking at the small- and mid-cap space in FY26? A) As of 28th April 2025, Nifty MIDSMALL 400 Index, the SMID focussed index was trading at 33.2 times. Earnings growth for this cohort is in single digits, and it also trades at a 90% premium to world midcap stocks. These numbers when put in the right context tell you that the margin of safety is missing. Unless valuations become attractive investors should only use a SIP route in this segment and avoid lumpsums and performance chasing. Q) Where is the value in the market after the recent fall we have seen? A) Stocks in the BFSI segment, particularly private banks, a few NBFCs, select auto and consumption companies along with the healthcare sectors offers value on a bottoms up basis. Q) How are FIIs viewing Indian markets? We have seen some net buying in the past few sessions, but for the month, FIIs have pulled out more than Rs 13,000 crore from the cash segment of Indian equity markets. A) All investors—whether institutional or retail, domestic or foreign—are broadly return chasers. Our tendency to label investor flows as FII, DII, or SIP can be misleading. The key impact of FII flows is not on stock market returns per se, but on India's balance of payments. That segment is currently doing fine, but the global trade war has made it more volatile. Q) Have you made any changes to your strategy or portfolio to balance out the volatility arising from external factors such as tariffs or geopolitical concerns? A) We were valuations focussed and continue to remain so. We may also want to take benefit of cheaper prices if these events and triggers create value in pockets of high quality.
Mint
02-05-2025
- Business
- Mint
Gold, stocks and FPIs: What the market crystal ball foretells for the next three months
Turbulence over Trump tariffs and the terror strike in Kashmir have darkened the mood for Indian investors buffeted by months of volatility, leaving them scrambling for answers: Does the road get rockier in the next three months? Are there any signs of comfort at all? What happens to initial public offerings (IPOs) after last year's frenzy? And will gold outperform equities again this year, after 2024? To gauge the market's pulse, we surveyed 30 investment professionals—analysts, economists, research heads, and fund managers—between 22 and 30 April. Their verdict: There is no escape from volatility, but in a bleak global setting, India might emerge as a bright spot. This is the third in a new Mint series of quarterly market surveys, the first of which was held ahead of Diwali in October 2024 and the secon d in February after the Union Budget. Most experts (77%) think that Indian investors should brace for moderate to moderately high levels of volatility in the next three months. However, 20% anticipate uncertainty will be high going forward. Ajit Mishra, senior vice-president of research at Religare Broking noted that President Trump's 'policy flip-flops", along with unpredictable reactions from other countries, are likely to inject a fresh wave of uncertainty as the 90-day tariff reprieve ends on 2 July. Even though India is not in tariff crossfire between the US and China, it is not immune to the secondary effects that are likely to rise from broader global disruptions. Hence, most experts expect increased fluctuations and increased short-term capital movements in the near term. Also read | India won the emerging market race again in FY25. Will it become a safe haven too? However, Jay Kothari, lead equity strategist at DSP Mutual Fund feels that historically, bouts of volatility have often offered the most opportune moments for long-term investments as prices tend to be lucrative during uncertain times. On the other hand, Prasanna Pathak, managing partner at The Wealth Company, believes the tariff threat might be moderate as the market generally does not 'discount the same news twice". 'Markets were relatively calmer during the second wave of covid, even though it was more fatal than the first wave," he argued. Still, Radhika Rao, executive director and senior economist at DBS Bank thinks that a tariff re-imposition might impact the domestic electronics, textiles, pharmaceuticals, and gems & jewellery sectors first. One should also avoid expensive midcap IT stocks, non-ferrous metals and commodity chemicals, given the concerns of dumping from China, according to JM Financial Services. More importantly, Rao believes a diversification strategy from the US dollar and assets into select emerging markets like India may offer better insulation from global volatility, driving inflows into the domestic market. To be sure, Indian markets have been reeling under relentless foreign portfolio (FPI) outflows, exorbitant valuations and poor corporate earnings since the second half of 2024, even before Trump's tariffs rattled world markets. Read this | Market shift: Retail investors and HNIs turn bearish on index futures following Pahalgam attack The majority of the respondents (57%) think India's unmatched scale and policy stability relative to smaller emerging market peers will offer respite to investors globally. Even though a few believe that Indian equities' high valuations may limit FPI inflows against cheaper rivals like Brazil or Vietnam, 20% of respondents think overseas flows may remain selective, focusing on select sectors like banking, fast-moving consumer goods and telecom. Devarsh Vakhil, head of prime research at HDFC Securities is particularly optimistic about a turnaround in FPI flows. He pointed out that overseas investors have purchased more than ₹ 32,000 crore of Indian equities, while domestic institutional investors (DIIs) have sold approximately ₹ 5,300 crore over the past two weeks. Vakhil thinks Indian equities are 'at the back end of the FPI selling cycle", where sticky long-term FPI money remains invested in India, with no change in sentiment. 'However, the more tactical, short-term capital may keep rotating in and out of Indian markets," he added. Going forward, cheaper valuations of large-cap stocks, where most of the FPI money is usually parked, might entice foreign capital back, noted experts. Around 63% of respondents think large-cap stocks have seen healthy corrections already and offer lucrative entry points across the board. Also read | FPIs bet on limited Nifty movement amid simmering India-Pakistan tensions However, the remaining 37% feel that currently, only a select few large cap pockets are looking cheap, while the broader universe is likely to face further corrections. Manish Jain, head of fund management at Centrum Broking finds banking, financial services and insurance (BFSI), automobiles, healthcare, and consumption discretionary sectors attractively priced at the moment. On mid- and small-cap stocks, the majority (63%), however, hold a cautious view. They think concerns have somewhat reduced after the Nifty Midcap 100 fell 23% from its September 2024 peak, and the Nifty Smallcap 100 has fallen around 25% from its December 2024 highs. These segments are looking moderately attractive right now, experts feel. 'Select (mid- and small-cap) stocks from the capital goods, housing, and electronics manufacturing sectors, supported by robust government policies now offer better risk reward opportunities," noted Gaurav Garg, research analyst at Lemonn markets desk. But correcting valuations might not be enough. Experts noted that India Inc would still need at least two quarters for its lacklustre earnings to catch up to valuations to drive a broad-based rally in the market. However, a resounding 80% of respondents believe that the March quarter will be in line with expectations. They expect earnings downgrades to slow down, with no material upgrades on the cards. Read this | Tariff-proof Nifty Bank may stretch rally by up to 2% to fresh high this week As sentiments remain fragile, mainboard IPOs have also remained largely absent in 2025, fizzling out after last year's frenzy. There were none in March and only one hit in late April, raising doubts about the market's animal spirits. But thankfully, 53% of experts foresee a cautious recovery in IPOs. However, they think only high-quality or well-known companies will dare to list in the near term. Another 40% think sentiment will stay muted for at least another quarter due to global uncertainties and valuation concerns. While volatility keeps the secondary market on its toes and chokes the supply of fresh scripts, gold has been claiming the crown, outclassing equities and debt so far this year. Gold returned almost 26% in 2024, outperforming riskier assets globally, and this year, it is up nearly 31% due to the recent rout in US treasury and currency markets. Hence, 67% of experts feel gold might outperform Indian equities and debt for the rest of 2025. But if there is a resolution to the trade conflicts, they also expect healthy corrections in the precious metal. 'The best way to play gold from hereon is through gold-related equities for those who have missed the rally in the physical commodity," said Kothari from DSP Mutual Fund. And read | Beyond the tariff truce: Where can investors find lasting protection?
