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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 16th, 2024, and will close on August 30th, 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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Investor Relations Officer, DSP Asset Managers Private Limited, Natraj, Office Premises No.302,3rd Floor, M V Road Junction. W. E. Highway, Andheri(East), Mumbai-400069, Tel.:022-67178000.
Mutual fund investments are subject to market risks, read all scheme related documents carefully. © DSPAM 2024.
Any information regarding securities offerings, or references to securities offerings, that are contained on these pages do not constitute or form part of any offer of securities for sale or the solicitation of an offer to purchase securities in the United States or in any other jurisdiction where such offer may be restricted. The information in the coming pages is not intended for, and is not to be made available to, persons in the United States (being persons resident in the US, corporations, partnerships or other entities created or organized in or under the laws of the US or any person falling within the definition of the term "US Person" under the US Securities Act of 1933, as amended), wherever located. Any information regarding securities offerings, or references to securities offerings, that are contained on these pages do not constitute or form part of any offer of securities for sale or the solicitation of an offer to purchase securities in the United States or in any other jurisdiction where such offer may be restricted. In no event shall DSP Mutual Fund and / or its affiliates or any of their directors, officers and employees be liable for any special direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein. The site, texts, images, designs, pictures, sounds, photographs, animation, and videos together with their layout and more generally all the items contained on this website are the sole property of DSP Asset Managers Pvt. Ltd. This site and all of the elements on this site are protected by Indian Law and by International copyright agreements concerning intellectual property. The content of this website must not be copied, modified, reproduced, distributed, transferred, edited or made accessible to third parties for any purposes whatsoever without obtaining prior permission from the owners of this website. *No. of unique investors who had invested with DSP at any time. ^Includes domestic AUM only, as on Dec 31, 2023 @ copyright DSPAM All rights reserved.
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