DSP Nifty 50 Index Fund

Index funds are passive mutual fund schemes that track a market benchmark index. The Nifty 50 Index Fund tracks the Nifty 50 Index, which includes the 50 largest companies by market capitalization in India. Unlike actively managed mutual funds, index funds don't aim to beat the benchmark; they simply mirror its performance. The Total Expense Ratio (TER) for index funds is lower than that of actively managed funds. They offer benefits and convenience of open-ended mutual fund schemes. Nifty 50 Index Funds provide a straightforward and cost-effective way to invest in Indian equities.

The DSP Nifty 50 Index Fund tracks the Nifty 50 TRI, an index of the 50 largest stocks by market cap. The weight of each stock in the Nifty 50 Index Fund matches its weight in the Nifty 50 Index. For example, if a stock has a 5% weight in the Nifty 50 Index, it will have the same weight in the Nifty 50 Index Fund.

Actively managed equity funds carry unsystematic risks because fund managers may be overweight or underweight on certain stocks compared to the benchmark index. Index funds avoid these risks because they match the weights of the underlying stocks with the index. As a result, index funds have lower risk compared to active funds and are subject to market risks.

Because index funds simply track a market index, they require less effort in fund management and research. Therefore, the Total Expense Ratio (TER) is relatively lower than that of actively managed mutual funds. Lower costs benefit index funds over the long term.

Consider investing in the DSP Nifty 50 Index Fund if you:

• Seek capital appreciation over long-term investments.
• Prefer passive investing and are content with returns that match the market.
• Have a minimum 5-year investment horizon.
• Have a high to very high risk appetite.
• Are a first-time investor looking for a simple approach to equity markets.

Consult with your financial advisor or mutual fund distributor to see if the DSP Nifty 50 Index Fund fits your investment needs.

Click the green INVEST button on the left side of the webpage (Click here). If you're already a DSP Mutual Fund investor, you can start investing right away. New to DSP Mutual Funds? Create a portfolio by filling out the necessary details. If you're new to mutual funds, complete the KYC requirements. Follow the on-screen instructions to get started. You can also invest in the DSP Nifty 50 Index Fund through your mutual fund distributor.

Returns from the Nifty 50 Index Fund can vary widely due to market conditions and economic factors. Historically, equity as an asset class has the potential to deliver relatively better returns compared to other asset classes. Since the Nifty 50 Index Fund invests in the largest companies in India, it tends to be less volatile than funds investing in the broader market, such as midcap or small-cap funds. However, the Nifty 50 Index Fund can be volatile in the short term, so investors should have long-term horizons.

Check the past performance of the DSP Nifty 50 Index Fund by visiting the performance section. View both lump sum and SIP returns and see how the fund has performed against its benchmark index (Nifty 50 TRI) over the last 1, 3, 5 years, and since inception. Always evaluate an equity index fund's performance over long periods.

Your investment amount depends on:

• Financial goals: What are your financial goals? How much do you need to invest to achieve them based on your expectations.
• Asset allocation: What's your risk appetite. How should you allocate your assets (e.g., equity, debt, large cap, midcap)? Consult your financial advisor if you need help understanding your risk appetite and asset allocation. Large caps are defined as top 100 stocks on market capitalization, mid caps as 101-250 small caps as 251 and above.
• Lump sum or SIP: Lump sum investments require a larger initial amount. With a Systematic Investment Plan (SIP), you can start investing regularly over a long period. Take advantage of market corrections by investing lump sums strategically.

The ideal investment duration in a Nifty 50 Index Fund depends on your financial goals and risk tolerance. Since this is an equity-oriented Index scheme, plan to stay invested for at least 5 years. Over a long period, investments can recover from market corrections and can possibly benefit from the power of compounding.