Publish Date:
DSP Mutual Fund has launched two new schemes in this new year – DSP Multicap Fund and DSP Nifty Healthcare ETF
Both are open-ended equity schemes – DSP Multicap Fund invests across large cap, mid cap, small cap stocks and DSP Nifty Healthcare ETF replicates/tracks Nifty Healthcare Index.
Accordingly, the investment objective of DSP Multicap Fund is to seek to generate long-term capital appreciation from a portfolio of equity and equity related securities across market capitalization.
DSP Nifty Healthcare ETF seeks to provide returns that, before expenses, correspond to the total return of the underlying index (Nifty Healthcare TRI), subject to tracking errors.
There is no assurance or guarantee that the investment objective of these schemes will be achieved.
[Read: How a Multi-Asset Fund Can Protect Your Portfolio at a Market High]
Under normal circumstances, DSP Multicap Fund will hold an allocation of 75% to 100% in equity and equity related instruments of which: 25% to 50% will be in large cap companies, 25% to 50% in mid cap companies and 25% to 50% in small cap companies, 0% to 25% in Equity and equity related overseas securities, 0% to 25% in Debt and Money Market Instruments and 0% to 10% in Units issued by REITs & InvITs.
DSP Nifty Healthcare ETF will hold an allocation of 95% to 100% in Equity and Equity Related Securities of companies constituting Nifty Healthcare Index, the Underlying Index and 0% to 5% in Cash and Cash Equivalents.
Investment Strategy: As per the Scheme Information Document, DSP Multicap Fund aims to generate long term capital appreciation by actively investing in equity and equity related securities of large cap, mid cap and small cap companies.
The Scheme will maintain a minimum exposure of 25% of its total assets in each market cap category viz. Large cap, Mid cap & Small cap. The portfolio construction will be based on a ‘bottom up’ approach as well as a ‘top down’ approach.
The Scheme may also invest up to 25% of its total assets in debt and money market securities. The Scheme will remain diversified across key sectors and economic variables.
[Read: Is it a Sensible Strategy to Invest in Both, Flexi-cap Fund and Multi-cap Fund?]
DSP Nifty Healthcare ETF will use a passive or indexing approach to endeavour to achieve scheme’s investment objective. The scheme will neither try to beat the index it tracks nor take active approach in times when markets seem to be over/under valued.
The fund managers will not make any judgments about the investment merit of a particular stock or a particular industry segment nor will it attempt to apply any economic, financial or market analysis. Since the scheme is an exchange traded fund, the scheme will only invest in the security constituting the underlying index.
Benchmark: DSP Multicap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI and DSP Nifty Healthcare ETF’s performance will be benchmarked against Nifty Healthcare TRI.
Fund Managers: DSP Multicap Fund will be managed by Mr Chirag Dagli and Mr Jay Kothari (for overseas investments), whereas DSP Nifty Healthcare ETF will be managed by Mr Anil Ghelani and Mr Diipesh Shah.
The NFO for DSP Multicap Fund opens for subscription on January 08, 2024 and closes on January 22, 2024. The scheme will reopen for continuous sale and repurchase within five days of allotment.
The NFO for DSP Nifty Healthcare ETF opens for subscription on January 11, 2024 and closes on January 25, 2024. The scheme will reopen for continuous sale and repurchase within five days of allotment.
The minimum subscription amount for DSP Multicap Fund is Rs 100/- and in multiples of Re.1/- thereof. And for DSP Nifty Healthcare ETF it is Rs 5,000/- and in multiples of Re.1/- thereof.
The DSP Multicap Fund offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW). Currently, there are no plan/options available under the DSP Nifty Healthcare ETF.