Publish Date:
DSP Mutual Fund launches – DSP Nifty Smallcap 250 Quality 50 Index Fund
It is an open ended scheme replicating/ tracking Nifty Smallcap250 Quality 50 Index.
Accordingly, the investment objective of the Scheme is to generate returns that are commensurate with the performance of the Nifty Smallcap250 Quality 50 Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be achieved.
[Read: Want to Invest in Small cap Funds? Manage the Risk and Reward Well]
Under normal circumstances, DSP Nifty Smallcap 250 Quality 50 Index Fund will hold an allocation of 95% to 100% in Equity and Equity Related Securities of companies constituting Nifty Smallcap250 Quality 50 Index, the Underlying Index, and 0% to 5% in Cash and Cash Equivalents.
As per the Scheme Information Document, DSP Nifty Smallcap 250 Quality 50 Index Fund will be managed passively with investments in stocks in the same proportion as in Nifty Smallcap250 Quality 50 Index.
The investment strategy would revolve around minimizing the tracking error through periodic rebalancing of the portfolio, taking into account the change in weights of stocks in the indices as well as the incremental collections / redemptions in the Scheme. A small portion of the net assets will be held as cash & cash equivalent.
DSP Nifty Smallcap 250 Quality 50 Index Fund’s performance will be benchmarked against Nifty Smallcap250 Quality 50 TRI.
The scheme will be managed by Mr Anil Ghelani and Mr Diipesh Shah
[Read: Reasons That Should Not Be the Basis for Investing in Small-Cap Funds]
The NFO opens for subscription on December 05, 2023 and closes on December 15, 2023. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.
The minimum subscription amount is Rs 100/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).