DSP Banking & Financial Services Fund
An open ended scheme replicating / tracking Nifty Smallcap250 Quality 50 Index.
Mutual Fund investments are subject to market risks, read all scheme related document carefully.
Why DSP Nifty Smallcap250 Quality 50 Index Fund?
Puts Quality First
It invests in 50 QUALITY companies from the SMALL CAP space, based on the potential for higher profitability, lower leverage & stable earnings.
Consistent Long Term Outperformance
100% of the times, on a 10 year basis, Nifty Smallcap250 Quality 50 index has outperformed Nifty Smallcap250 TRI and the average of Active Small Cap funds2.
Proven Alpha
In 12 out of 19 calendar years, Nifty Smallcap250 Quality 50 TRI performed better than its parent index Nifty Smallcap250 TRI. Earned CAGR 19.3% vs 15.7% by Nifty Smallcap250 TRI over the last 19 years1.
A 'zero-bias' strategy
Being a passive fund, it has no fund manager bias and a comparatively lower expense ratio than active small-cap funds.
Where exactly does it invest?
DSP Nifty Smallcap250 Quality 50 Index Fund will replicate the Nifty Smallcap250 Quality 50 Index. You get access to only 50 'quality' companies from Nifty Smallcap250 Quality 50 Index , selected based on ‘quality’ scores.
What are Quality Scores? The quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analyzed during the previous 5 years. The weight of each stock in the index is based on a combination of stock’s quality score and its free float market capitalization.
Who should invest?
If you have a very high risk and are prepared to face short-term fluctuations
If you want to diversify existing active smallcap funds in the portfolio at lower cost
If you recognize market falls as good opportunities to invest even more
If you have the patience & mental resilience to remain invested for a decade or more
Know this before you invest
This is a very high-risk strategy more suitable for experienced investors or those who have access to expert advice. We recommend investing through SIP in this Scheme for longer tenure
Nifty Smallcap250 TRI is a diversified universe with 250 stocks while Nifty Smallcap250 Quality 50 TRI is relatively concentrated with only 50 stocks. There are certain sectors which don’t form meaningful part of Nifty Smallcap250 Quality 50 Index universe owing to high leverage (e.g. Telecom, Power etc.). This index may underperform when such sectors perform well.
What do you need to invest?
You need a folio with DSP Mutual Fund to invest in the Scheme.
Frequently asked questions
What is the taxation structure?
This Scheme follows equity taxation.
Can I do both SIP and lump-sum investment in DSP Nifty Smallcap250 Quality 50 Index Fund?
Yes, you can do both an SIP and lumpsum investment in this fund.
Who are the fund managers of the fund?
Anil Ghelani and Diipesh Shah are the fund managers of the Scheme.
Disclaimers
1Data as on 31 Oct 23; Source Internal, NSE; Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. These figures pertain to performance of the index and do not in any manner indicate the returns/performance of the scheme.
2Data as on 31 Oct 23; Source – Internal, NSE. Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. These figures pertain to performance of the index and do not in any manner indicate the returns/performance of the scheme.
CAGR: Compound Annual Growth Rate
During the NFO period, you can invest as low as Rs. 100/- & any amount thereafter. Note that unit allotment (if you invest during the NFO period) units will be issued at a premium approximately equal to the difference between face value and Allotment Price during the NFO and at NAV based prices on an on-going basis
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.
There is no assurance of any returns/capital protection/capital guarantee to the investors in above mentioned Schemes.
Active Smallcap fund managers have their own stock selection framework & philosophy and differ from Index funds as it needs to replicate the Index.
The investment approach / framework/ strategy / portfolio / other data mentioned herein are dated and proposed to be followed by the scheme and the same may change in future depending on market conditions and other factors.
The sector(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future position in these sector(s).
Any comparisons with Nifty Smallcap250 TRI or with actively managed small cap funds should not be taken as a hard recommendation for Nifty Smallcap250 Quality 50 TRI only. The broader Nifty Smallcap250 TRI or actively managed smallcap funds have their own benefits and may outperform the Nifty Smallcap250 Quality 50 TRI under certain conditions. Please consult your financial advisor before making any investment decisions.
Risks associated with small cap companies:
Investment in small cap companies is based on the premise that these companies have the ability to increase their earnings at a faster pace as compared to large cap and mid cap companies and grow into larger, more valuable companies. However, as with all equity investments, there is a risk that such companies may not achieve their expected earnings results, or there could be an unexpected change in the market, both of which may adversely affect investment results. Historically, it has been observed that as you go down the capitalization spectrum i.e., from large cap stocks to mid cap stocks and beyond, there are higher risks in terms of volatility and market liquidity. Scheme invests in small cap companies and hence is exposed to associated risks.
Large-caps are defined as top 100 stocks on market capitalization, mid caps as 101-250 , small caps as 251 and above.
For scheme specific risk factors, asset allocation details, load structure, scheme expense details, investment objective, and more details, please read the Scheme Information Document and Key Information Memorandum of the scheme available at the Investor Service Centers of the AMC and also available on www.dspim.com.
| Scheme Name and Type | Product Suitability | Scheme Riskometer | Benchmark^ Riskometer |
| DSP Nifty Smallcap250 Quality 50 Index Fund (An open ended scheme replicating/ tracking Nifty Smallcap250 Quality 50 Index) |
This product is suitable for investor who are seeking*
* Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them. |
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^Benchmark: Nifty Smallcap250 Quality 50 TRI |
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The product labelling assigned during the New Fund Offer (‘NFO’) is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made
For scheme information document, click here.
For product presentation, click here.
For index disclamier, click here.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
DSP Nifty Smallcap250 Quality 50 Index Fund