NFO Alert ! The largest 10 companies in one fund - India’s first ever Nifty Top 10 Equal Weight Index Fund

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16th August 2024
30th August 2024
The cheapest way to own India's top 10 companies in equal weight.
 
Out of the Nifty 50 Index, Top 10 stocks by size* constitute the Nifty Top 10 Equal Weight Index
• The entry & exit of stocks are accounted semi-annually & portfolio is rebalanced quarterly.
*Based on 6-month average free float market cap. Non-member eligible stock shall be included if its free-float market capitalization is at least 1.5 times the free-float market capitalization of the smallest index constituent. Hence, the top 10 stocks in Nifty 50 may not necessarily be part of Nifty Top 10 Equal weight Index

Source – NSE, Internal. Data as on July 31st, 2024.
Detailed methodology can be found at https://www.niftyindices.com/Methodology/Method_NIFTY_Equity_Indices.pdf

Did You Know : 

The bottom 490 stocks of Nifty 500 have outperformed the top 10 stocks on average in last 4 years. 


Now – Should you go with relatively undervalued this time?








Are You Fond of Stock SIPs ?

 

Did You Know?

 

A Stock SIP to own India's Top 10 Largest Companies  would cost you around Rs. 21,500/- per month.

 

But, you can own the same basket of Top 10 LARGEST Companies of India* in the DSP Nifty Top 10 Equal Weight Index Fund with a SIP of just Rs. 1,000/- per month,

 

Benefits of Investing via MF vs. Stock SIP:

 

1. Rebalancing:


- Mutual Fund: Rebalancing happens at the fund level on Quarterly Basis and index is reconstituted on semi annual basis to ensure entry and exit of stocks based on their market cap making their investment journey smooth and hassle free.

- Direct Stock SIP: Rebalancing your direct stocks portfolio individually attracts Capital Gains Tax.

 

2. Dividends:


- Mutual Fund: Dividends are reinvested at the fund level, ensuring uninterrupted compounding.

- Direct Stock SIP: Dividends from individual stocks are taxable at the marginal rate for shareholders.

 

3. Reasons to buy


- Weight of top 10 stocks as % of total market capitalization at all time low

• Better valuation vs other broader indices

• Underperformance in last 3 years vs other broader indices/ active funds




Source: Internal, Data as of July 31st 2024

For index disclaimers, visit https://www.dspim.com/mandatory-disclosures
DSP Nifty Top 10 Equal Weight Index Fund
(An open ended scheme replicating/tracking Nifty Top 10 Equal Weight Index)
Product Suitability
This product is suitable for investors who are seeking*

• Long-term capital growth
• Investment in equity and equity related securities covered by Nifty Top 10 Equal Weight Index, subject to tracking error.
Scheme Riskometer
BENCHMARK [Nifty Top 10 Equal Weight TRI] RISKOMETER
The product labelling assigned during the New Fund Offer ('NFO') is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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