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.
The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries.
DSP Nifty 50 Index Fund
Investment objective
The primary investment objective is to invest in companies that are constituents of the NIFTY 50 Index (the underlying index) in the same proportion as in the index and seeks to generate returns that are commensurate (before fees and expenses) with the performance of the underlying index, subject to tracking error.
Investment Process
- The fund replicates the Nifty 50 TR Index, i.e., invests in the same stocks and proportion as in the Nifty 50 TRI.
- The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the index.
Portfolio Composition
Since the fund replicates Nifty 50 TRI, all the stocks invested are large-cap stocks. Hence, the fund allows investors to invest in India’s top 50 companies.
Source: DSP MF
Top 5 Holdings
| Name | Weightage % |
| Reliance Industries Limited | 10.29 |
| HDFC Bank Limited | 9.25 |
| ICICI Bank Limited | 8.05 |
| HDFC Limited | 6.32 |
| Infosys Limited | 5.62 |
Source: DSP MF
Performance over the years
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs 17,086.
Source: DSP MF
Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 13.66%.
DSP Tax Saver Fund
Fund Manager at DSP Nifty 50 Index Fund
- 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?
This fund is suitable for
- A first-timer or a relatively new equity market investor.
- An investor who values low-cost, passive investing.
- Investors have the patience & mental resilience to remain invested for a decade or more.
- Investors who do not chase funds that have the highest outperformance.
Why invest in this Fund?
- It offers an affordable way to invest in the top 50 Indian companies at a relatively low cost compared to other actively managed large-cap funds.
- In an era where large-cap funds are underperforming benchmarks, index funds can be a good option for exposure to large-cap equities.
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 50 Index Fund provides a good option for passive investing in large-cap equities. It is better to consider index funds for large-cap investing since there is a very low probability of alpha generation in the large-cap space.
Investors seeking capital appreciation through large-cap exposure can consider this fund with a time horizon of ten years or more.
Disclaimer
This is not a recommendation advice. All information provided in this blog is for educational purposes only.
