Publish Date:
DSP Mutual Fund has launched DSP BSE Sensex Next 30 Index Fund and ETF, it is an open-ended scheme replicating/ tracking BSE SENSEX Next 30 Index.
BSE Sensex Next 30 Index represents the next wave of emerging market leaders after the Sensex 30. These companies hold the potential to transition into large-cap giants, making them an attractive choice for long-term investors seeking growth opportunities. The index's sectoral diversity across financial services, IT, healthcare, and consumer goods ensures balanced exposure to India's economic trajectory.
DSP's launch of the BSE Sensex Next 30 Index Fund and ETF is timely, providing investors with a cost-effective, passive investment option to access this high-potential segment.
[Read: ETFs vs Mutual Funds: A Comprehensive Comparison for Smart Investors]
Details of DSP BSE Sensex Next 30 Index Fund and ETF:
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Investment Objective |
The investment objective of the Scheme is to generate returns that are commensurate with the performance of the BSE SENSEX Next 30 Index, subject to tracking error.
There is no assurance that the investment objective of the Scheme will be achieved. |
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Category |
Index Fund & Exchange Traded Fund (ETF) |
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SIP/STP/SWP |
Available |
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Min. Investment (Index Fund) |
Rs 100/- and in multiples of Re 1 thereafter. Additional Purchase Rs 100/- and in multiples of Re 1 thereafter. |
Face Value |
Rs 10/- per unit |
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Min. Investment (ETF) |
Rs 5,000/- and in multiples of Re 1 thereafter. |
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Plans |
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Options |
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Growth
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Income Distribution cum capital withdrawal (IDCW)
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Entry Load |
Not Applicable |
Exit Load |
NIL |
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Fund Manager |
- Mr Anil Ghelani
- Mr Diipesh Shah |
Benchmark Index |
BSE SENSEX Next 30 TRI |
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Issue Opens: |
January 10, 2025 |
Issue Closes: |
January 24, 2025 |
*Presently the ETF scheme does not offer any Plans/Options.
(Source: Scheme Information Document)
What will be the investment strategy for DSP BSE Sensex Next 30 Index Fund and ETF?
DSP BSE Sensex Next 30 Index Fund and ETF will follow passive investment strategy with investments in stocks in the same proportion as in BSE Sensex Next 30 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 subscriptions / redemptions in the Scheme. A small portion of the net assets may be held as cash & cash equivalents to meet the liquidity requirements under the Scheme.
About BSE Sensex Next 30 Index
The BSE Sensex Next 30 Index, often referred to as the Sensex Next 30, is a benchmark index that represents the performance of the next 30 largest companies listed on the Bombay Stock Exchange (BSE) after the Sensex 30. These companies are considered market leaders in their respective sectors and are often seen as potential candidates for inclusion in the Sensex 30 in the future.
Data as of January 13, 2025
(Source: PPT - DSP BSE Sensex Next 30 Index Fund and ETF)
The Scheme invests in the securities included in its underlying index regardless of their investment merit. The fund managers do not attempt to individually select stocks or to take defensive positions in declining markets. Consequently, the NAV of the Units of the Scheme may fluctuate and can go up or down.
How will the scheme allocate its assets?
Under normal circumstances, DSP BSE Sensex Next 30 Index Fund and ETF will hold an allocation of 95% to 100% in Equity and Equity Related Securities of companies constituting BSE SENSEX Next 30 Index, the Underlying Index and 0% to 5% in Cash and Cash Equivalents
Should investments in DSP BSE Sensex Next 30 Index Fund and ETF be considered?
DSP BSE Sensex Next 30 Index Fund and ETF provides investors with exposure to the BSE Sensex Next 30 Index, which comprises the next 30 largest companies who offer strong growth potential. Investing in such funds allows investors to participate in the wealth creation journey of companies that are likely to transition into large-cap giants over time.
One of the key advantages of investing in the DSP BSE Sensex Next 30 Index Fund and ETF is diversification across sectors and industries. The index includes companies from various sectors such as financial services, healthcare, IT, and consumer goods, providing a balanced exposure to the Indian economy. This diversification reduces the concentration risk associated with investing in a single sector or a few large-cap companies.
Another compelling reason to consider this fund is its growth potential. The companies in the Sensex Next 30 Index are typically in the growth phase of their business cycles. These firms often display faster revenue and profit growth compared to their larger counterparts, making them appealing for long-term investors with moderate to high-risk tolerance. However, investors should also be prepared for higher volatility compared to funds tracking the Sensex 30, as mid-cap stocks are generally more sensitive to market fluctuations.
For those seeking a cost-effective investment option, ETFs tracking the Sensex Next 30 Index offer a low expense ratio, making them an efficient choice for passive investors. Index funds, on the other hand, provide the flexibility of systematic investment plans (SIPs), enabling disciplined investments over time. These products cater to different investment preferences, whether you prefer a lump sum or gradual accumulation of wealth.
If you have a long-term horizon and can withstand short-term market volatility, the DSP BSE Sensex Next 30 Index Fund and ETF could be a good addition to your portfolio. It's essential to compare its performance, expense ratios, and tracking error with similar funds before making a decision. By doing so, you ensure that your investments are tailored to your needs and market conditions.