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

-






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.


Comments

Post a Comment

You are requested to mentioned your full name with email id while commenting.




I would like to request you to join our following services.
It is the smartest way to stay on top of latest Mutual fund, Bonds & IPO News .

 Product Updates on whatsapp


 Product Updates on Email 

                                                   
 Product Updates on Telegram



You will get daily news updates for FREE. 
I also request you to spread the world by referring us to the smartest people you know.  

To share it with your friends, 
just Copy below message it & paste in your group

Subscribe to Our WhatsApp, Email & Telegram Update Service ! https://bit.ly/3ryhxBM
     

Popular Posts

Key Trigger Points for Market

-
All eyes in the market will be on Friday's nonfarm payrolls data, which will provide new clues on how well the US economy is recovering and how fast the Federal Reserve might unwind its stimulus programme, which it began to taper last month, and how long it will keep its interest rates low. Before Friday's jobs report, investors will focus on the minutes of the Fed's December policy meeting {for insights on the voting members' stance on the bond-buying programme, known as quantitative easing } ,due out on Jan 8 thursday. India will release November factory output on January 10, the first important data ahead of the Reserve Bank of India's monetary policy review on January 28. Industrial output data, IIP, will be followed by the more important December consumer and wholesale inflation data in the week starting Monday, January 13, amid widespread expectations food prices have substantially eased last month. Thanking you Regards, Rajesh Kumar Kathpalia
Read more

FinMin to give in-principle approval for UTI Mutual Fund IPO soon

-
FinMin to give in-principle approval for UTI Mutual Fund IPO soon Country's oldest fund house UTI Mutual Fund may revive its initial public offer (IPO) plan after Finance Ministry's nod which is expected soon. "There is proposal for IPO of UTI Mutual Fund and the Finance Ministry is looking at it. The Ministry after consideration can give in-principle approval for public offer," sources said. Government has stake in the UTI Mutual Fund through public sector banks and insurance companies. State Bank of India, Punjab National Bank, Bank of Baroda and LIC holding stake in UTI Mutual Fund on behalf of government of India. State Bank of India, Punjab National Bank, Bank of Baroda and LIC jointly owns 74 per cent stake in the fund house while remaining 26 per cent stake is with the US-based investment firm T Rowe Price. In 2008, UTI Asset Management Company deferred its IPO ownin g to uncertain market conditions. The fund house had proposed to sell 4.8 cror
Read more

FM's solution to fiscal deficit: Earn now, spend next year

-
Among the finance ministry's efforts to contain the fiscal deficit this year, it appears, is some financial jugglery. Much of the additional expenditure is being rolled over to next financial year, while the tax and dividend income to accrue next year is being brought forward into this year's books. The aim is to ensure the fiscal deficit 'red line' drawn by Finance Minister P Chidambaram — of 4.8 per cent of gross domestic product — is not breached. Tax officers are reportedly asking companies to make higher advance tax payments and, if their actual profits turn out to be lower than projections, take refunds next year. If refunds are high, this would mean an extra burden on the next government, as the finance ministry pays interest at 0.5 per cent per month, or six per cent a year, on refunds to taxpayers. For companies, this means the money that could have been invested elsewhere lies idle. Companies make advance tax payments in four instalments — in June, Sept
Read more