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DSP Nifty Midcap 150 Quality 50 Index Fund

DSP Nifty Midcap 150 Quality 50 Index Fund 

July 6, 2023 | By EduFund | 7:19 am

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years.

DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. Let us discuss the consumer product – DSP Nifty Midcap 150 Quality 50 Index Fund. 

DSP Nifty Midcap 150 Quality 50 Index Fund 

Investment Objective

The scheme’s investment objective is to generate returns commensurate with the performance of the Nifty Midcap 150 Quality 50 Index, subject to tracking error. 

Investment Process  

  • The scheme is managed passively with investments in stocks in the same proportion as in Nifty Midcap 150 Quality 50 Index. 
  • The investment strategy revolves 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. 

Portfolio Composition 

The fund had invested 99.69% in equity, and the remaining was held in the form of debt/cash and cash equivalents as on 30th June 2023. 

dsp-niftymidcap-150-quality-50-index-fund-portfolio-composition
Note: Data as on 30th June 2023. 
Source: DSP MF

Top 5 Holdings 

Name Weightage % 
Tata Elxsi Limited 4.20 
Tube Investments of India Limited 3.63 
ICICI Securities Limited 3.09 
Persistent Systems Limited 3.03 
APL Apollo Tubes Limited 2.91 
Note: Data as on 30th June 2023. 
Source: DSP MF 

Performance 

If you had invested 10,000 at the fund’s inception, it would now be valued at Rs 10,850. 

DSP-Nifty-50-Index-Fund-Performance
Note: Data as of 30th June 2023.
Source: DSP MF

Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 8.5%. 

Invest In Fund

Fund Manager 

  • Anil Ghelani has been managing this fund since July 2019 as a Co-Fund Manager. Anil has been working with DSP Group since 2003 and is Head of Passive Investments & Products. Previously, he was the Business Head & Chief Investment Officer at DSP Pension Fund Managers. Before that, he led the Risk and Quantitative Analysis team at DSP Mutual Fund, responsible for monitoring portfolio risk and buy-side credit research on companies across various sectors. 
  • Diipesh Shah has been managing this fund since November 2020 as a Co-Fund Manager. Diipesh has a total work experience of Over 20 years. He has been working with DSP since September 2019 as a Dealer for ETF and Passive Investments. Now he is also the Fund Manager of various schemes of DSP Mutual Fund. Diipesh has worked with JM Financial Institutional Broking Limited, Centrum Broking Limited, IDFC Securities Limited, and Kotak Securities Limited as Institutional Equity Sales Trading. 

Who Should Invest in DSP Nifty 50 Index Fund? 

Consider this fund if you  

  • Are you an experienced investor or have access to expert advice? 
  • Already have a strong core portfolio and are looking to invest in the mid-cap space. 
  • Want to diversify existing active midcap funds in the portfolio at a lower cost? 
  • Have the patience & mental resilience to remain invested for a decade or more. 
  • Recognize market falls as good opportunities to invest even more. 
  • Accept that equity investing means risk exposure. 

Why Invest in this Fund? 

  • Aim to build wealth by investing conveniently in objectively qualified quality mid-cap companies. 
  • Affordable investing as compared to buying individual stocks of the Nifty Midcap 150 Quality 50 Index. 
  • It can help you beat the impact of rising prices over the long term. 
  • Since the fund only replicates an index & does not have an ‘active’ fund manager, it carries no human decision-making bias. 
  • Have the potential to beat the broader Midcap 150 index & active midcap funds over the long term. 

Ideal Time Horizon 

  • One should look at investing for at least ten years or even more. 
  • Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. 
Conclusion 

The DSP Nifty Midcap 150 Quality 50 Index Fund provides a good option for passive investing in mid-cap equities.

Since the fund was launched less than a year ago, it will be required to monitor how efficiently it tracks the underlying index.

Investors seeking capital appreciation through mid-cap exposure by following a passive style of investing can consider this fund with a time horizon of ten years or more.