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Are you thinking of buying digital gold? But not sure if digital gold is a good investment or not. We will help you.   As India embraces financial education and the desire to engage in different types of investments, the idea of investing in the digital version of a commodity that the country has been both physically and emotionally tied to is slowly beginning to take shape.  In India, physical gold is still the most popular traditional method of gold investment. Digital gold assets are currently being examined. We will discuss the options and how to invest in digital gold in this blog.  Advantages of digital gold It allows you to keep gold digitally without ensuring a secure bank locker. Consequently, you will not have to worry about storage or security. The custodian's vaults have verified 24-carat, 99.99 percent pure gold, which is used for digital gold investments. Impurities are a common problem with physical gold. Purchasing actual gold also implies expensive manufacturing fees. Except for 3% GST, a digital gold account is free. Since digital gold prices are the same throughout India, you may buy and sell gold digitally at completely transparent, real-time market rates.   Additionally, you are not subject to any deductions when selling your gold back to the platform online. If exchanged in this way, the majority of platforms offer the perk of inexpensive home delivery of the physical gold. Additionally, compared to genuine physical gold, digital gold enables purchases in far smaller amounts.  Additional read: Benefits of digital gold Disadvantages of digital gold Ah, to feel as though you were wrapped in gold! Something that digital gold would never provide you. In countries like India, acquiring gold is an obsession. Therefore, digital gold might not resonate with all demographics. However, only some hold that opinion, which is a blessing. Some people view gold as a pure investment, and when given a choice, they choose digital gold since it is quick and secure. Steps to buying Digital gold A Demat account that is connected to a bank account and PAN card is required for investors.  Consumers can purchase specific gold goods via reputable stock exchanges after opening a Demat account, or they may do so straight through a mutual fund for gold ETFs and the RBI-announced SGB (Sovereign Gold Bond) series for SGBs.  Consumers have two options for selling their gold digitally: either they can hold it till maturation and then release it, or they may sell it on the secondary market, or stock exchanges.  Additionally, a few businesses give customers the possibility to buy digital gold starting at INR 1.  Know-your-customer (KYC) documentation must be accurate and checked prior to purchase. E-KYC and video KYC are two available Demat KYC modes that streamline and hasten the procedure of creating an account to purchase gold digitally.  Generally, KYC includes the person's PAN and Aadhar Card information. Additional read: Physical gold vs Digital gold Risk related to digital gold The main risk associated with every investment is that it will often lose value, which will lead to slower growth. That risk applies to digital gold purchases as well  In the case of digital gold, India still lacks a well-established regulatory structure to control metal transactions. It's necessary to think about this possible risk. Investors must conduct due diligence on the honesty and business model of the provider of digital gold until the government announces the required regulations to control the buying and selling of digital gold.  Any online payment is at significant risk from cyber-attacks. This also applies to purchasing the commodity in digital form.  To prevent any hazards, it is important to assess the reliability and standing of the somersaulting company where the gold is kept as well as the sufficiency of insurance if administrators are chosen by digital gold-providing firms.  Another ambiguity is hidden fees. Check any or all charges associated with the product before investing. If not, they will have a negative impact on the investment's overall results.  Conclusion The Indian federal government made it clear in the Plan for FY 21-22 that the markets regulator SEBI will serve as the supervisor for gold markets. This action is anticipated to increase confidence across the board in the commodities market, especially among retail gold buyers and gold traders.  With SEBI functioning as the regulator, the procedure of buying and selling gold is being simplified, like how shares are now dematerialized. This has led to a simpler delivery of the gold product in one trading day plus two more days, or T+2 days.  Investors must be smarter with money and receptive to novel investment products for the idea of purchasing and selling digital gold to become more widely accepted. FAQ Is digital gold better than gold?  There is no difference in price between physical gold and digital gold. Additionally, a person dealing in digital gold should not worry about storage since it is safely kept in free, guaranteed vaults.  Who is buying digital gold?  MMTC PAMP, Augment Goldtech, and Digital Gold India are the 3 best-known companies offering digital gold in India (Safe Gold) in partnerships with several financial service providers, including Paytm, Google Pay, Amazon Pay, and Phone Pe, among others, these businesses sell digital gold. Can I get profit from digital gold?  Virtual gold is a profitable investment choice despite some downsides, such as investment caps and a lack of a governing organization. It supplies adaptability, purity, and the right financial worth. Consult an expert advisor to get the right plan TALK TO AN EXPERT

If you pay attention to your daily routine, you'll see that many firms' products/services have a link with your life and the lives of millions of families across the nation and the globe. But it begs the question: Are you taking advantage of such opportunities?  During talks, we frequently hear statements like, "The Pradhan Mantri Jan Dhan Yojana is a terrific program introduced by the government to make banking inclusive" but what are we doing to turn this into wealth?  Today's world is constantly evolving, and there has been a massive paradigm shift due to disruptive ideas, unparalleled technical advancements, and changing consumer tastes. Thematic investing is a type of investment strategy that identifies more significant macro-level trends as well as the firms and sectors that will benefit from those trends materializing.   A good investor seeks to predict these trends and buy in the underlying assets and businesses ahead of time. The goal of thematic investing is to profit from these transitions by selecting and investing in firms most likely to gain from them.   It entails matching our values and ideals to our assets. Thematic investing is gaining popularity to identify future contributors of return from stock investments allowing investors to outpace traditional broad indexes, which reflect the market's overall movement. The good news for many investors is that thematic investing offers the potential to assist in positioning holdings for long-term growth. What is the process of Thematic investing?  A conventional thematic investing strategy considers the following variables when selecting stocks, ETFs, bonds, mutual funds, and other assets.  You can engage in themed mutual funds or exchange-traded funds (ETFs), which provide you with expert investment analysis and management benefits.   While investing in ETFs or mutual funds, you can benefit from experienced financial planners and research groups who strive to build high-performing products.   Investing in a thematic fund enables you to diversify your risk by investing in a single theme.  Manually creating a thematic portfolio involves the following steps Finding Themes and Categories - As a first step, you should screen out the themes you are interested in.  Research and Choice - Examine various concepts and sectors, compare them to other asset classes, and decide.  Managing Weights - Consideration is for the market-cap-weighted or risk-weighted allocation in the portfolio. You can, however, shuffle and personalize your portfolio based on your risk appetite.  Rebalance - It is customary to restructure your portfolio regularly to get optimal returns and risk balance. As the performance of the constituents diverges, you should change your portfolio to bring the weights back into line with the original strategy. Sector Investing vs Thematic Investing  Since sector investment and thematic investing are similar, it's easier to get these two methods mixed up. Targeting companies in specific parts of the economy, like information technology or energy, is known as sector investing.   On the other hand, a theme investing strategy can span many industries to correspond with a potential market or specific goal.  1. Sectoral investing Investing in companies that are parts of a specific industry, such as semiconductor manufacturers, healthcare, or social media companies.  2. Thematic investing Investing in one or more of the following industries simultaneously, as long as they are related to a disruptive communications theme: semiconductor manufacturers, mobile phone tower operators, and social media firms.  Benefits of Thematic Investing Thematic investing allows you to profit from future trends. It assists you in investing in 'Future Businesses' due to its forward-looking character.  A themed investment strategy focuses on a single theme, idea, event, or government policy and invests in linked industries.  To understand future trends, thematic investing necessitates a thorough awareness of the impact of all patterns on various areas and sectors and a forward-thinking cognitive process.  Thematic investing can operate as a portfolio hedge since it focuses on global trends and disruptive innovations.  Thematic investing gives the possibility for investors to earn more alpha.  Limitations of Thematic Investing  Thematic funds carry a high level of risk because of their basis on a single idea or subject that may or may not generate high returns, particularly during market cycles.  If you invest in themed mutual funds, you should expect a higher expense ratio than conventional mutual funds.  FAQs What is Thematic investing? Thematic investing is a type of investment strategy that identifies more significant macro-level trends as well as the firms and sectors that will benefit from those trends materializing. This type of investment allows you to take advantage of upcoming trends and invest in profitable upcoming investments. What does thematic mean in investing? Thematic investing researches a particular theme and its consequent investment opportunities. It you to profit from future trends. It assists you in investing in 'Future Businesses' due to its forward-looking character.  A themed investment strategy focuses on a single theme, idea, event, or government policy and invests in linked industries.  How do you do thematic investing? Fund managers or advisors research a theme that they believe will become profitable in the future. They develop a strategy to study its development and investment opportunities. For example, digitization and AI are considered futuristic themes worth evaluating from a thematic investing perspective. Is thematic investing risky? Yes, just like any form of investing, thematic investing carries a level of risk and return. Emerging opportunities and structural transformations that can provide superior returns or intangible gratification to the investor are the focus of thematic investing.  To create optimal returns and maintain a balanced risk profile, you should regularly monitor and review your portfolio. Consult our expert advisor to get the right plan  TALK TO AN EXPERT

The economic impact of Covid-19 has kept Indian and global markets volatile. Markets can trade at higher valuations and drop suddenly without investors realizing it.   This has caused a lot of confusion among investors about how to protect their investment portfolios.  With markets still unpredictable, experts suggest it's the right time to invest in overseas equities like the U.S., especially for investors looking to manage risk through diversification.  Market experts suggest investing in U.S. stocks through Exchange Traded Funds (ETFs) and Funds of Funds (FoFs). So how can you invest in U.S. stocks through a mutual fund?  Read on, to know about U.S. stock mutual funds. What are the mutual fund options to invest in U.S. stocks? 1. Actively managed international mutual funds  International equity mutual funds are the funds that invest a subsequent portion of their total amount in U.S. equities; meanwhile, maintaining some portion focused on Indian equities can be an ideal choice for fresh investors who want to have exposure to the U.S. stock market.   2. ETFs and FoFs  Barring exposure to the U.S. stock markets, Exchange-traded funds and Funds of Funds can provide diversification benefits to the investor's portfolio looking for portfolio stability. ETFs track an underlying index, providing an organized and transparent investment approach while providing exposure to foreign markets. Fund of funds invests in several other mutual funds and allows investors to benefit from exposure to various investments with minimal investment amount. ETFs or FoFs are the cost-effective mode of investment to gain exposure to the U.S. market.  3. Index mutual funds  These funds are passively managed funds and track a specific index from the U.S. stock market. These funds replicate the composition of an index and try to match the returns generated by the same index while charging a low expense ratio.  Benefits of investing in U.S. stocks  Many investors ask why they invest in U.S. stocks when many Indian stocks offer high growth. Let's discuss some benefits of investing in U.S. stocks: Portfolio diversification: By investing in U.S. stocks, an investor can broaden & diversify the overall investment portfolio across the U.S. economy. This helps in mitigating any India-specific economic risks.  The benefit of dollar appreciation: In 2011, the USD-INR exchange rate stood at about Rs. 47. And today, it is around Rs. 82. This indicates that an investor who has invested in the U.S. stock market could have gained 36% by simply taking advantage of the currency appreciation. This gain is apart from the gains that could be made from the U.S. stock market.  Higher returns possibility through international exposure: Compared to the Indian stock market, the trends in the U.S. market have reflected comparatively lower volatility. The former has also provided higher returns on a currency-adjusted basis.  Exposure to companies with higher growth potential: The U.S. market is considered a leader compared to other international markets due to technological innovation, pharmaceutical advancements, and industrial expansion. Investing in U.S. stocks allows Indian investors to benefit from many innovative and high-potential companies.  Who invests in U.S. Stocks through Mutual funds?  Investing in U.S. equities through mutual funds is ideal for investors who:  Are seeking to attain diversification by widening their portfolio's geographical exposure  Want to gain international stock market exposure but at lower risk levels  Seeking higher gains beyond what domestic markets could provide  Have a longer investment horizon and higher risk appetite  Mutual funds help reduce the overall risk that can arise from exposure to the U.S. stock market, but investors should be aware that equity investments carry the risk of loss.  Factors to consider when investing in International mutual funds Investors should be aware of the following risks and tax considerations associated with investing in international mutual funds.  Every international fund has some common risks that investors must be prepared to take while investing in these to gain exposure to U.S. stocks. These are:  Exchange rate risk  Foreign market risk  Concentration risk  Investors must also remember that any returns from international fund investments attract taxes in India. Some points to note here are:  Any dividends of more than Rs. 5,000 from these funds attract TDS at 7.5% for resident investors.  Long-term capital gains tax at 20% is applicable on returns from units redeemed after staying invested for three years.   Short-term capital gains tax is applied per an individual's tax slab for returns from fund units that are redeemed before the completion of 3 years.  Conclusion  The pandemic has forced the world to adopt a new normal in many ways: how we invest, spend, and think about saving. Investors are now focused on keeping their available capital safe. At the same time, more investors are more willing to take risks when working internationally with their portfolios. What better way to explore international markets than to invest in U.S. stocks easily through mutual funds? Consult an expert advisor to get the right plan TALK TO AN EXPERT

How to earn money by investing and where to invest so that you can save a good amount for later years is a dilemma that many individuals encounter. There are numerous options, and an individual needs to choose the best-suited investment plan to grow their savings. We will look at some of the most popular investment opportunities to help investors understand “How to earn money by investing”. Some investment options to earn money 1. Debt Mutual Fund Schemes Debt Mutual Fund Schemes are fixed-income generating securities with a fixed interest rate and maturity date. These are good options for short and medium-term investments and ideal for risk-averse investors who are looking for good returns and stable investments.  The gains from the Debt Mutual Fund Schemes are eligible for indexation benefits after three years and are taxed at 20%.  Some of the important Debt Mutual Fund Schemes are Certificates of Deposit, Commercial Papers, Treasury Bills, Corporate Bonds, Government Securities, etc. There are different types of Debt Mutual Funds, like Liquid Funds, Money Market Funds, and Corporate Bond Funds and investors must choose the right option. Open an account on the Edufund App and start investing in Direct Mutual Funds with no hidden costs.  2. Equity Mutual Fund Schemes Equity Mutual Fund Schemes are the preferred investment tools of investors who are ready to take high risks for higher returns. The fund manager has to invest 65% of the assets in equity shares of different companies and the balance in any other money market instruments.  The Equity Mutual Fund Schemes can be actively managed by the fund manager by handpicking the stocks or passively managed by tracking the market index like the ETFs. These schemes are categorized based on investment strategies like the Sectoral Funds, market capitalization like the Large Cap Funds, or tax treatment like the ELSS Funds.   3. Investment in Gold Investment in actual gold, like bars, coins, or ornaments, is one of the traditional investment options, but it has several drawbacks like safety and higher cost. Gold ETFs and Sovereign Gold Bonds are comparatively safe and cost-effective investment schemes. 4. Equity Shares Investing in equity shares is not for faint-hearted investors as the risk is very high, and there is no guarantee of returns. Over the years, equity shares have delivered higher returns compared to other asset classes. Hence investors should invest with care.  5. Bank Fixed Deposits Bank Fixed Deposits have been the most common choice for investors who are looking for safe and secured investment options and assured returns. FDs can be for short, medium, or long periods depending upon the individual choice.  Banks offer a 5% to 7% rate of interest depending upon the tenure, although senior citizens are granted better interest rates than the general population. The Government of India has recently increased the limit of insurance cover on Fixed Deposits for both the principal and interest in case of bank failure to INR 5 Lakhs from the previous amount of INR 1 Lakh for each depositor in a bank.  6. Sweep-in Fixed Deposit The Sweep-in Fixed Deposit allows the investor to enjoy the interest rates of a regular bank FD with liquidity and flexibility features that the FDs do not enjoy.  For such a scheme, the account holder of a savings or current account gets his account linked to an FD. He has to specify a certain amount, above which the additional amount must be converted into an FD without any hassle. It is easy to withdraw the amount without penalties.  7. Post Office Schemes The Post Office Schemes are government-backed safe, and secured investment options. Some of them also offer tax-savings benefits U/S 80C of the Income Tax Act. The interest rates are generally set by the government at the start of every quarter of the fiscal year.  Prime examples of Post Office Schemes are National Savings Certificates with 6.8% per annum interest compounded annually, Sukanya Samriddhi Account with 7.6% per annum interest compounded annually, and Kisan Vikas Patra with 6.9% per annum interest compounded annually. TALK TO AN EXPERT

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. Let us talk about the flagship product – DSP Nifty 50 Equal Weight Index Fund. DSP Nifty 50 Equal Weight Index Fund  Investment objective The primary investment objective of the Scheme is to invest in companies that are constituents of the NIFTY 50 Equal Weight Index (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   By matching the Nifty 50 Equal Weight TR Index, it allows you to invest in India's top 50 companies, each with the same weight in the portfolio. The portfolio is re-aligned every quarter so every stock's weight is brought back to 2%.  Portfolio composition  The portfolio has an entire equity exposure of 100% in large-cap companies. The top 5 sectors hold nearly 48% of the portfolio, with major exposure to the banking and automobile sectors. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com https://www.youtube.com/shorts/MlOiPHJjTjs Top 5 holdings Name Sector Weightage % Axis Bank Ltd. Bank 2.34 Coal India Ltd.  Coal Mining company 2.19 Sun Pharmaceutical Industries Ltd. Pharmaceutical 2.16 HCL Technologies Technology 2.16 Power Grid Corporation of India Ltd.  Electric Services 2.12 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC Performance over 5 years  If you had invested 10,000 at the inception of the fund, it would be now valued at Rs. 16,625. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch as on Nov 11, 2022. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of more than 5 years by generating a CAGR (Compounded Annual Growth Rate) of 10.58%. Fund managers  Anil Ghelani - Total work experience of 22 years. Managing the scheme since June 2019. He was also the CIO of DSP Mutual Fund.  Diipesh Shah - Total work experience of 20 years. Managing the scheme since November 2020.  Who should invest in the DSP Nifty 50 Equal Weight Index Fund?  Investors  Aiming to build wealth by investing conveniently & equally in the top 50 Indian companies.  Have the patience & mental resilience to remain invested for a decade or more.  Why invest in the DSP Nifty 50 Equal Weight Index Fund?  Can help you beat the impact of rising prices over the long term.  A well-diversified portfolio avoids undue concentration in a few stocks/sectors.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This is a zero-bias product since it only replicates an index and does not carry any stock or sector bias & does not have an 'active' fund manager. Relatively low-cost, with a comparatively lower expense ratio than active large-cap funds. It offers a well-diversified portfolio and avoids undue concentration in a few stocks/sectors. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

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. Let us talk about the flagship product – DSP Nifty 50 Index Fund. About DSP Nifty 50 Index Fund  - Investment objective To invest in companies that are constituents of the NIFTY 50 Index (underlying Index) in the same proportion as in the index and seek to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, "subject to tracking error".  - Investment process   The portfolio of this index fund replicates the Nifty 50 TR Index - same stocks, same weights. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.  - Portfolio composition  The entire portfolio exposure of 100% is only in large-cap stocks replicating the Nifty 50 Index. The top 5 sectors hold nearly 67% of the portfolio, with major exposure to the banking sector. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % Reliance Industries Ltd. Conglomerate 11.01 HDFC Bank Ltd. Bank 8.25 ICICI Bank Ltd. Bank 7.93 Infosys Ltd. Information Technology 7.05 Housing Development Finance Corporation Ltd. Financial Services 5.61 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 3 years  If you would have invested 10,000 at the inception of the DSP Nifty 50 Index Fund, it would be now valued at Rs. 17,368. The DSP Nifty 50 Index Fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch; Inception Date – Feb 21, 2019. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of more than 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.98%. Fund managers  Anil Ghelani: Total work experience of 22 years. Managing the scheme since June 2019. He was also the CIO of DSP Mutual Fund.  Diipesh Shah: Total work experience of 20 years. Managing the scheme since November 2020. Who should invest in DSP Nifty 50 Index Fund?  Investors looking for  Aim to build wealth by investing conveniently in the top 50 Indian companies.  Relatively low-cost funds, with a comparatively lower expense ratio than active large-cap funds.  Why invest in DSP Nifty 50 Index Fund?  This fund can help you beat the impact of rising prices over the long term.  It has no sector or stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This DSP Nifty 50 Index Fund offers an affordable way to buy the top 50 Indian stocks. Since the fund only replicates an index & does not have an 'active' fund manager, it carries no human decision-making bias.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

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. Let us talk about the flagship product – DSP Quant Fund. About DSP Quant Fund - Investment objective The investment objective of the scheme is to deliver superior returns as compared to the underlying benchmark over the medium to long term through investing in equity and equity-related securities.  - Investment process   The portfolio of stocks will be selected, weighed, and re-balanced using stock screeners, factor-based scoring, and an optimization formula that aims to enhance portfolio exposures to factors representing 'good investing principles' such as growth, value, and quality within risk constraints.  - Portfolio composition  The equity exposure is majorly in large-cap stocks at 83% and sectoral major exposure is to banks and financial services. The top 5 sectors hold nearly 53% of the portfolio. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % ICICI Bank Ltd. Bank 5.16 Housing Development Finance Corporation Ltd. Financial Services 4.36 HDFC Bank Ltd. Bank 4.28 Bajaj Finance Ltd. Financial Services 4.07 Bajaj Finserv Ltd. Financial Services 4.06 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 3 years If you would have invested 10,000 at the inception of the DSP Quant Fund, it would be now valued at Rs. 15,891. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – Jun 10, 2019. Source: dspim.com  The DSP Quant Fund has given consistent returns and has outperformed the benchmark over the period of 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.02%. Fund managers  Anil Ghelani - Total work experience of 22 years. Managing the scheme since June 2019.   Diipesh Shah - Total work experience of 20 years. Managing the scheme since November 2020.   Prateek Nigudkar - Total work experience of 9 years. Managing this fund since May 2022.   Aparna Karnik - Total work experience of 17 years. Managing this fund since May 2022.   Who should invest in DSP Quant Fund?  Investors looking for  Long-term wealth creation solution.  Looking for a portfolio with fundamentally strong sectors and stocks that do not experience very high volatility.  Why invest in DSP Quant Fund?  Investment in the active portfolio of stocks screened, selected, weighed, and rebalanced on the basis of a predefined fundamental factor mode.  It has no sector or stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The fund has a strategy of quality, value, and growth while selecting the stocks for its portfolio. This fund uses a multi-factor approach to assess companies in a holistic manner. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

You have seen several different types of ETFs. There are some specialized ETFs that use complex strategies to deliver a return. Leveraged ETFs are one such type of specialized ETF.  What do leveraged ETFs mean? In layman's terms, it means exerting force. In ETF parlance, it means generating a multiple of returns given some return of the underlying index.   For instance, ProShares Ultra S&P 500 ETF is a leveraged ETF that returns twice the daily return of the S&P 500. If the S&P is up 2% daily, the ETF will be up 4% after adjusting the expense ratio. Conversely, if the S&P is down 1.5%, the ETF will be down 3%.  These leveraged ETFs rebalance their portfolio allocations daily. Thus, each day is considered a new day without any connection to the previous day.   Most investors confuse this leverage with more time-bound influence, as in if the S&P is up 10% in a year, the ETF will be up 20% if it's a 2x return ETF, which is entirely wrong! These ETFs work on a daily leverage basis, and in the long run, the fund will not exactly replicate the underlying index. The rebalancing of funds is done on a daily basis to generate an assured return. Continuing with our previous example, if the ProShares ETF is giving a 2x return, the ETF will have to acquire assets that are twice the value of the NAV of the fund.   As an illustration, if a fund has 100 units of securities, the fund will swap these with the counterparty for exposure to 200 units of the performing assets. This rebalancing is usually in the direction of the market.  Such leveraged ETFs can be shortly leveraged or long leveraged Long-leveraged ETFs will trace the market trend in the same direction. Short-leveraged ETFs will move on the contrary.   For example, the ProShares UltraShort S&P 500 ETF design is such that if the S&P rises 5% in a day, the ETF goes down 10%, i.e., a 2x return in opposite direction. Similarly, if the index value falls 5%, the ETF will be up 10%.  Since the rebalancing is on a daily basis, compounded growth, in the long run, doesn't resemble the development of the underlying index. Volatility in the market can severely dent the prospective gains of the ETFs, leading to severe underperformance compared to the underlying assets. For instance, if a triple-leveraged ETF loses 30%, the underlying index must have lost only 10%.   A leveraged ETF can lose its value in some tremendously sporadic cases, mainly when derivatives are part of the ETFs kitty.  Let's take some easy examples and understand how things pan out.  1. Let's take a scenario where the market is up 5% daily, and a 2x long leveraged ETF is traded. Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 5% 105.00 110.00 10% 2 5% 110.25 121.00 10% 3 5% 115.76 133.10 10% 4 5% 121.55 146.41 10% 5 5% 127.63 161.05 10% 6 5% 134.01 177.16 10% 7 5% 140.71 194.87 10% 8 5% 147.75 214.36 10% 9 5% 155.13 235.79 10% 10 5% 162.89 259.37 10% 10-day cumulative change   62.89 159.37   2. Let's take a scenario where the market is down 5% daily, and a 2x long leveraged ETF is traded: Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 -5% 95.00 90.00 -10% 2 -5% 90.25 81.00 -10% 3 -5% 85.74 72.90 -10% 4 -5% 81.45 65.61 -10% 5 -5% 77.38 59.05 -10% 6 -5% 73.51 53.14 -10% 7 -5% 69.83 47.83 -10% 8 -5% 66.34 43.05 -10% 9 -5% 63.02 38.74 -10% 10 -5% 59.87 34.87 -10% 10-day cumulative change   -40.13 -65.13   3. Let's take a scenario where the market is down 5% and up 5%, and a 2x long leveraged ETF is traded. Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 5% 105.00 110.00 10% 2 -5% 99.75 99.00 -10% 3 5% 104.74 108.90 10% 4 -5% 99.50 98.01 -10% 5 5% 104.48 107.81 10% 6 -5% 99.25 97.03 -10% 7 5% 104.21 106.73 10% 8 -5% 99.00 96.06 -10% 9 5% 103.95 105.67 10% 10 -5% 98.76 95.10 -10% 10-day cumulative change   -1.24 -4.90   These are the types of results you can expect if you hold a leveraged ETF. So, an investor must not get deceived by the vocabulary of the ETF, i.e., 2x isn't the 2x that you think. Traders for making quick short-term gains have used leveraged ETFs.  Suppose an investor predicts that the price of natural gas will increase in the coming days or weeks, then investing in a leveraged ETF to enhance the return is sensible if the prediction is correct. However, if it's the other way around, he can buy some inverse leveraged ETFs to maximize his gains and thus act as a hedge to prevent potential losses.  If the prediction is wrong, the losses are magnified by such ETFs.  How do Leveraged ETFs Work?  Let’s say an investor buys shares of a 3 times-leveraged ETF for $200. If the underlying index rises 20% in a single session, the investor gains 60%, boosting the investment to $320.  Leveraged ETF resets every day for the next session. If the underlying index drops 10% the following day, the position's value declines 30% to $272.  As and when the stocks and market indexes fall or rise over time, longer-term positions in leveraged ETFs can become very challenging to hold, thanks to amplified gains and losses.  Who should invest in Leveraged ETFs? Leveraged ETFs are best for seasoned investors with a comprehensive understanding of the risks involved and how it works.  Leveraged ETFs offer an opportunity to add significant value to a trader's overall investment strategy who has an appetite for risk, significant experience, and wish to amplify daily returns in both uptrend and downtrend.  When volatility in the market increases, leveraged ETFs can be effectively used for hedging purposes. Leveraged ETFs can open up many new opportunities if the objective is to hedge your trades and enhanced returns.  Remember to research leveraged funds with caution, as losses can be magnified similarly to returns.  Proceeding with caution and doing due diligence before acting is the way to go. FAQs What is a leveraged ETF? Leveraged ETFs generate a multiple of returns given some return of the underlying index.   Who Should Invest in Leveraged ETFs? Leveraged ETFs are best for seasoned investors with a comprehensive understanding of the risks involved and how it works.  How Do Leveraged ETFs Work?  Leveraged ETFs offer an opportunity to add significant value to a trader's overall investment strategy who has an appetite for risk, significant experience, and wish to amplify daily returns in both uptrend and downtrend.  Consult our expert advisor to get the right plan for you TALK TO AN EXPERT

Thinking of buying Bitcoins? Maybe Bitcoin ETFs? But what is a bitcoin and what are bitcoin ETFs? How can you invest in bitcoins, what is the procedure and benefits? Lets find out! Bitcoin is a cryptocurrency founded by an unidentified person Satoshi Nakamoto, in 2009. This cryptocurrency makes blockchain principles its base, which enables a distributed network to maintain an immutable, decentralized ledger of transactions with no single-point failure.   Bitcoins are created through the "mining" process, using specialized computers to solve increasingly complicated arithmetic puzzles. Because this process is decentralized, buyers have appreciated the deflationary attraction of a limited and finite quantity of only 21 million bitcoins.   This cryptocurrency has enabled anonymous transactions, more efficient cross-border capital transfers, and the creation of a new digital store of value.  Since its inception, Bitcoin has been a disruptor, challenging the business practices of both traditional financial sector organizations and central banks. The Bitcoin economy is still in its early stages, with significant growth potential and associated hazards.   While trading in Bitcoin may offer huge profits in the short term, there is still a lot of ambiguity among authorities and various obstacles in safely keeping the asset across platforms.   Due to these risks, no ETFs that provide especially significant exposure to Bitcoin are currently available; however, numerous funds are in the plans. Investors can also have tangential access to Bitcoin by investing in Blockchain technology companies.  Trading in Cryptocurrencies such as bitcoin necessitates a little more effort than investing in equities, bonds, and other traditional assets. To trade in cryptocurrencies, you have to open a trading account with a crypto trading exchange. There's also the issue of storing cryptocurrency, which necessitates the usage of a crypto wallet.  Buying a Bitcoin ETF or fund that operates on a stock exchange as a workaround for these concerns allows you to keep your Bitcoin investment in the same account as your other stocks, bonds, and traditional financial products.  What are Bitcoin exchange-traded funds (ETFs)?  Bitcoin ETFs are stock exchange-traded funds that seek to track Bitcoin's performance. When you purchase an ETF, you are not buying the fundamental investment.   Instead, you're purchasing stocks in a fund that invests in or tries to replicate the performance of a particular security or index in this case, Bitcoin.  Bitcoin ETFs would merge the most significant aspects of the two most popular investments: the simplicity of engaging in an ETF and access to bitcoin, the popular cryptocurrency.  The ETFs will function similarly to other ETFs. On the other hand, Bitcoin ETFs will monitor the price of Bitcoin rather than a market index like the S&P 500 or the DJIA.  Who should buy Bitcoin exchange-traded funds (ETFs)?  A Bitcoin ETF could be an excellent alternative for those searching for a more conventional approach to investing in Bitcoin. Investing in Bitcoin directly can be challenging, as it requires determining how the asset will be kept and which exchange to use to make the transaction. Crypto futures contracts are packaged into ETFs, which removes some complexity.  The ETF structure may make it easier for certain institutional investors to enter the cryptocurrency market, which may help maintain the Bitcoin demand. Where can you get Bitcoin ETFs?  Most online brokers who sell traditional assets such as equities and bonds will be able to offer Bitcoin ETFs. Traditional exchanges trade ETFs, such as the New York Stock Exchange and the Nasdaq.  Are Bitcoin ETFs subject to regulation?  The establishment of any Bitcoin-related ETFs has proven to be problematic. The ProShares Bitcoin Strategy ETF was the first ETF linked to Bitcoin when it was introduced last October; rather than investing in Bitcoin directly, the fund employs futures contracts.   Due to various factors, the Securities and Exchange Commission is still yet to authorize ETFs that invest directly in Bitcoin.  While there are currently no ETFs that acquire Bitcoin directly, there are alternatives. Here are five things to think about  ETFAUMDescriptionGrayscale Bitcoin Trust (OTC: GBTC)$27.2 billionThis is an investment trust, not an ETF, but it's the first and largest fund tracking Bitcoin's performance.ProShares Bitcoin Strategy ETF (NYSEMKT: BITO)$1.41 billionA recent ETF launch attempts to track Bitcoin using Bitcoin futures contracts.Bitwise 10 Crypto Index Fund (OTC: BITW)$894 millionThis fund is 60% Bitcoin, with the balance invested in other cryptos.Bitwise Crypto Industry Innovators ETF (NYSEMKT: BITQ)$117 millionThis ETF invests in Bitcoin and crypto stocks.Valkyrie Bitcoin Strategy ETF (NASDAQ: BTF)$51 millionThis is a new ETF that invests in Bitcoin futures from a crypto investment firm. FAQs Are there any Bitcoin ETFs? Bitcoin is indeed a recent addition to the exchange-traded fund market (ETF). Investors can access the alluring possibilities of Bitcoin through Bitcoin exchange-traded funds (ETFs) without having to store it securely. Presently, Bitcoin ETFs could only hold equities of firms or other ETFs that have exposure to cryptocurrencies, along with Bitcoin futures contracts. Can one purchase Bitcoin ETF? Your choices are very constrained if you wish to purchase a Bitcoin ETF. The ProShares Bitcoin Strategy ETF ($BITO) is the only Bitcoin ETF that is accessible in the United States. You will require a foreign securities account because the Bitcoin ETF BTCE is listed outside of the Frankfurt Stock Exchange. What is an ETF for Bitcoin? An exchange-traded fund (ETF) for bitcoins maintains tabs on the currency market. Rather than using crypto exchange platforms, ETFs can be purchased, bought, and exchanged on standard stock market markets. Aside from the inherent volatility of Bitcoin investments, Bitcoin ETFs and funds aren't a great substitute if you want access to the world's largest digital currency.   However, choosing an ETF has advantages because it is useful as a workaround for tracking Bitcoin's performance. Consult our expert advisor to find the right plan for you TALK TO AN EXPERT

What financial barometer would you use to gauge the economy's health if you had to choose only one?  The S&P 500 is the de facto daily economic index in the United States. Even though the S&P 500 is given second billing in the financial press and receives little attention elsewhere, its significance is critical.   Let's learn about the S&P 500 in this article.  What is the S&P 500?  The S&P 500 is a stock market index that tracks the stock prices of 500 of the country's top publicly traded corporations. It covers corporations from 11 industries to represent the stock market's and economy's health in the United States.   The S&P 500, often known as the Standard & Poor's 500 Composite Stock Price Index – is one of the most used indices for tracking the performance of U.S. equities.  What companies make up the S&P 500, and how does the index stack up?  Companies need to meet some criteria in order to be in the index.   Have a market capitalization of at least $8.2 billion, which refers to the total value of the company's outstanding shares.  Be based in the United States.  Assume the form of a corporation and issue common stock.  Be listed on a U.S. exchange that qualifies. (REITs, or real estate investment trusts, are eligible for inclusion.)  Have positive as-reported earnings in the most recent quarter and during the last four quarters combined?  Due to this criterion, only the largest and most stable firms in the country can be included in the S&P 500. The list is re-evaluated and updated every quarter.  The index tracks the market capitalization of the businesses in the S&P 500 index. The entire value of all shares of stock issued by a corporation is its market cap.   It is calculated by multiplying the stock price by the number of shares issued. A corporation having a market capitalization of $200 billion will be represented twenty times as much as a company having a market capitalization of $10 billion.   As of January 2022, the S&P 500 had a cumulative market cap of $34 trillion.  Top 10 constituents by index weight in the S&P 500 CompanyStock TickerSectorMicrosoft Corp.MSFTInformation TechnologyApple IncAAPLInformation TechnologyAmazon.com IncAMZNConsumer DiscretionaryFacebook Inc AFBCommunication ServicesAlphabet Inc AGOOGLCommunication ServicesAlphabet Inc CGOOGCommunication ServicesJohnson & JohnsonJNJHealthcareBerkshire Hathaway BBRK.BFinancialsVISA Inc AVInformation TechnologyProctor and GamblePGConsumer Staples The S&P 500 sector breakdown as of January 2022 included  The S&P index performance  Without adjusting for inflation, the average yearly rate of return of the S&P 500 (that comprises dividends) has been around 10% for nearly a century. However, keep in mind that this does not guarantee a yearly return of 10% on an S&P 500 index fund.  S&P 500 milestones  The table below depicts several S&P 500 milestone events, including highs and lows and memorable occasions.  June 4, 1968100.38First time above 100Oct. 19, 1987224.84Black MondayMarch 24, 1995500.97First close above 500Feb. 2, 19981,001.27First close above 1,000Oct. 9, 20071,565.15Highest close before the financial crisisOct. 13, 20081,003.35Largest % gain of 11.6%Aug. 26, 20142,000.02First close above 2,000Sept. 21, 20182,929.67New record highFeb. 19, 20192,779.76New record highJuly 12, 20193,013.77First close above 3,000March 12, 20202,480.64Largest % decline since Black Monday entered bear marketMarch 23, 20202,237.40Stock crash lowAugust 18, 20203,389.78New record high end of a bear marketAugust 28, 20203,508.01Closes above 3,500April 1, 20214,019.87Closes above 4,000Oct. 13, 20214,519.63Closes above 4,500 How to invest in the S&P 500 index?  You don't have to buy all 500 stocks in the S&P 500 to invest in the index. Investors can also trade in individual equities directly.   Investors can choose from various index funds and exchange-traded funds (ETFs). These funds track the S&P 500 index's performance this is, in fact, one of the most effective strategies for novice investors to get their toes wet in the financial markets.   Some popular S&P 500 index funds Vanguard 500 Index Investor Shares (VFINX)  Fidelity 500 Index Fund (FXAIX)  Schwab S&P 500 Index Fund (SWPPX)  T. Rowe Price Equity Index 500 Fund (PREIX)  Some popular S&P 500 ETFs SPDR S&P 500 ETF (SPY)  iShares Core S&P 500 ETF (IVV)  Vanguard S&P 500 ETF (VOO)  SPDR Portfolio S&P 500 ETF (SPLG)  FAQs What is the S&P 500 in simple terms? S&P 500, or Standard and Poor’s 500, is a stock market index that tracks 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. What is the S&P 500 and how does it work? S&P 500 is one of the most commonly followed equity indices in the United States. The index tracks 500 large companies listed on the stock exchanges. The S&P 500 is a free-floated weighted index. It is calculated by multiplying the stock price by the number of shares issued. What is the difference between S&P 500 and S&P 500 index? The S&P 500 index and the total stock market index fund represent US stocks only. While S&P 500 index tracks only large-cap stocks, the total stock market index includes small, mid and large-cap stocks. What does S&P 500 index include? The S&P 500 is a stock market index that tracks the stock prices of 500 of the country’s top publicly traded corporations. It covers corporations from 11 industries to represent the stock market’s and economy’s health in the United States. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

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. Let us talk about the flagship product – DSP Equity & Bond Fund. DSP Equity & Bond Fund  - Investment objective The primary investment objective of the Scheme is to seek to generate long-term capital appreciation and current income from a portfolio constituted of equity and equity-related securities as well as fixed-income securities (debt and money market securities).  - Investment process   The DSP Equity & Bond Fund invests in a good mix of equity & debt instruments, trying to deliver equity-like returns with a slightly lower risk profile. The equity portion is well diversified across multiple sectors & different-sized companies while the debt portion is mostly in highly rated debt instruments with shorter-term maturity profiles  - Portfolio composition  The portfolio has an equity exposure of 65%+ while debt exposure is kept at less than 35%. The major equity exposure is around 62% in a large cap. The top 5 sectors hold nearly 43% of the portfolio, with major exposure to the banking and finance sector. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % HDFC Bank Ltd. Bank 7.69 ICICI Bank Ltd. Bank 5.52 Bajaj Finance Ltd. Financial Services 4.34 Infosys Ltd. Information Technology 3.47 Avenue Supermarts Ltd. Retail 3.08 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 23 years  If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs. 2.2 lakhs. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – May 27, 1999, as on Nov 11, 2022 Source: Moneycontrol The fund has given consistent returns and has outperformed the benchmark over the period of more than 23 years by generating a CAGR (Compounded Annual Growth Rate) of 14.36%  Fund managers  Atul Bhole – Mr. Atul is the Vice President of Investments of DSP Blackrock Investment Managers. He has been managing the fund as a Co-Manager since 2016.  Dhaval Gada – Mr. Dhaval has been managing the fund since September 2022. He is also the Vice President of Investments of DSP Mutual Fund.  Vikram Chopra – Mr. Vikram comes with an industry experience of 14 years. He has been actively managing this fund since July 2016.  Who should invest in DSP Equity & Bond Fund?  Investors  Looking to invest in the equity markets but don't know how to begin.  Have the patience & mental resilience to remain invested for a decade or more.  Why invest in DSP Equity & Bond Fund?  This fund is the simplest way to get the benefit of asset allocation with a balance of growth & stability orientation.  Potential capital preservation during falling markets due to debt allocation.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This DSP Equity & Bond Fund offers the potential to grow your wealth over the long term and potential capital preservation during falling markets due to debt allocation. This fund offers debt allocation to control losses during major market collections.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry.  DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades, DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & integrity.  DSP Flexi Cap Fund  Investment objective An open-ended growth scheme, seeking to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity-related securities of issuers domiciled in India. Investment process The DSP Flexi Cap Fund follows a growth style of investing which consists of growth stocks of large-, mid and small-cap companies. The investment philosophy of the fund is to buy quality businesses, stay invested, and use corrections to average down.  The portfolio construction involves investing across the market capitalization spectrum. The fund core portfolio is based on long-term themes, a core equity portfolio of 75% - 80%, and a tactical equity portfolio of 20% - 25% with a total number of stocks of 50-70. Framework to identify companies are business strength, management quality, and growth prospects. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 61% and sectorally major exposure is to financial services that account for more than one-third of the portfolio. The top 5 sectors hold nearly 73% of the portfolio. Note: Data as of 31st Oct 2022. Source: Value Research  https://youtube.com/shorts/3iy-aCJoJmo DSP Flexi-Cap Fund - Top 5 holdings Name Sector Weightage % HDFC Bank Financial 9.96 ICICI Bank Financial 7.34 Bajaj Finance Limited Financial 5.96 Infosys Technology 4.50 Avenue Supermarts Limited Services 4.07 Note: Data as of 31st Oct 2022. Source: Value Research  Performance over 25 years  If you would have invested 10 lakhs at the inception of the DSP Flexi Cap Fund, it would be now valued at Rs 8.12 crore.  Note: Performance of the fund since launch; Inception Date – Apr 29, 1997, till Nov 14, 2022. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of 25 years by generating a CAGR (Compounded Annual Growth Rate) of 18.77%.  Fund manager  Atul Bhole: Prior to joining DSP Mutual Fund, he worked with Tata Mutual Fund, JP Morgan Services Pvt. Ltd., and SBI Treasury.  Who should invest in the DSP Flexi Cap Fund?  Investors looking to  Hold multi-cap companies i.e. large/mid/small cap under one umbrella  Invest in market leaders of different size  Why invest in the DSP Flexi Cap Fund?  One-stop option for equity investments, investors no need to decide on large/mid/small cap allocation  The fund owns high-quality companies with good prospects, which are good for long-term  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The DSP Flexi Cap Fund has a well-diversified portfolio of 52 stocks that have delivered consistent returns over 25 years with a proven track record with an 18.77% CAGR consistently. The fund is suitable for investors who want to have a core equity portfolio and tactical equity portfolio under one fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry.  DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades, DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & integrity. DSP Tax Saver Fund Investment objective   The primary investment objective of the Scheme is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity-related securities of corporates and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. Investment process The DSP Tax Saver Fund follows a blended style of investing which consists of value and growth stocks of large-, mid, and small-cap companies. The investment philosophy of the fund is to buy fundamentally strong businesses, which are driven by growth drivers and valuation support to determine relative attractiveness.  Portfolio construction involves investing in market capitalization companies using top-down and bottom-up approaches. The fund focuses on long-term growth with a portfolio of 60-65 stocks. The fund tracks the stock performance v/s fundamental changes.  DSP Tax saver Fund portfolio composition  The portfolio holds the major exposure in large-cap stocks at 70% and sectorally major exposure is to financial services that account for more than one-third of the portfolio. The top 5 sectors hold nearly 70% of the portfolio.  Note: Data as of 31st Oct 2022. Source: Value Research Top 5 holdings Name Sector Weightage % HDFC Bank Financial 8.91 ICICI Bank Financial 8.57 Infosys Technology 7.02 Axis Bank Financial 5.02 State Bank of India Financial 3.75 Note: Data as of 31st Oct 2022. Source: Value Research  Performance over 15 years If you would have invested 10 lakhs at the inception of the DSP Tax Saver Fund, it would be now valued at Rs 83.90 lakhs.  Note: Performance of the fund since launch; Inception Date – Jan 18, 2007, till Nov 14, 2022. Source: Moneycontrol  The DSP Tax Saver Fund has given consistent returns and has outperformed the benchmark over the period of 15 years by generating a CAGR (Compounded Annual Growth Rate) of 14.38%.  Fund manager at DSP Tax saver fund direct growth Charanjit Singh  Prior to joining DSP Mutual Fund, he worked with Capital Goods, Power & Infra at B&K Securities India, Capital Goods and Infra at Axis Capital Ltd., BNP Paribas India Securities, Thomas Weisel Partners, HSBC, IDC Corp., and Frost & Sullivan.  Rohit Singhania  Prior to joining DSP AMC, he worked with HDFC Securities Ltd. and IL&FS Investsmart Limited.  Who should invest in DSP Tax Saver Fund?  Investors looking to  Save taxes by investing in an equity core portfolio  Invest in multi-cap equity allocation  Why invest in DSP Tax Saver Fund?  Strong stock selection approach using a combination of top-down and bottom-up selection criteria  Shortest lock-in period when it comes to the tax-saving asset class  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility.  Conclusion  The fund follows a strong approach toward stock selection and tracks the performance of the same. The fund has delivered consistent returns over 15 years with a proven track record with a 14.38% CAGR consistently. The fund is suitable for investors who want to have core equity with tax benefits. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. Abhilash Anand - Equity Research Analyst Provides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions.