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DSP Nifty Bank Index Fund NFO: Review, NAV & Opening date
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The banking sector is poised for growth in the near future, presenting an opportunity for substantial profits. However, investing separately in multiple stocks can be a hassle. To keep your investment process hassle-free, you can perk your funds in a mutual fund. The DSP Nifty Bank Index Fund could be the perfect fit for you.
DSP Nifty Bank Index Fund - NFO Overview
The DSP Nifty Bank Index Fund is tailored for individuals looking to invest in the banking sector. With no lock-in period, this fund enables investors to diversify their portfolios and aim for optimal long-term profits.
From May 15, 2024, to May 27, 2024, the fund will invest in a diversified portfolio, including equity and equity-related securities of companies in the Nifty Bank Index, as well as cash and cash equivalents.
Fund Overview
The DSP Nifty Bank Index Fund-NFO holds an AUM totalling Rs. 237 crores. This fund has a stamp duty of 0.005% (From July 1st 2020). For investors looking to invest, the minimum investment required is an SIP of Rs 100.
|
Start Date |
15 May 2024 |
|
End Date |
27 May 2024 |
|
VRO rating |
- |
|
Expense ratio |
0.16 |
|
Exit load |
Nil |
|
AUM (Fund size) |
Rs. 237 Cr. |
|
Lock-in |
No Lockin |
|
Stamp Duty |
0.005% (From July 1st 2020) |
|
Benchmark Index |
Nifty Bank TRI |
|
Min. investment |
SIP ₹100 |
|
Risk |
Very High |
The Objective of the Fund
The Scheme aims to achieve returns that align with the performance of the Nifty Bank Index, while accounting for tracking error.
Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows
|
Types of Instruments |
Minimum Allocation (% of Net Assets) |
Maximum Allocation (% of Net Assets) |
Risk Profile |
|
Equity and Equity Related Securities of companies constituting Nifty Bank Index, the Underlying Index |
95 |
100 |
Very High |
|
Cash and Cash Equivalents |
0 |
5 |
Low |
Peers of DSP Nifty Bank Index Fund - NFO
|
Nifty Bank ETF |
1Y Return |
3Y Return |
AUM (Cr) |
|
Nippon India ETF Bank BeES |
10.33% |
45.17% |
6,421 |
|
Kotak Nifty Bank ETF |
10.24% |
44.66% |
5,365 |
|
SBI-ETF Nifty Bank |
9.71% |
45.30% |
4,312 |
|
UTI Nifty Bank ETF |
9.42% |
43.91% |
3,270 |
|
Aditya Birla Sun Life Nifty Bank ETF |
10.45% |
45.06% |
Risk Factors in Such Funds
-
Securities listed on the stock exchange generally have lower liquidity risk. However, the ability to execute investment strategies or sell these investments may be limited by overall trading volume, settlement periods, and transfer cycles on the stock exchanges.
-
Equity shares and equity-related instruments are volatile and subject to daily price fluctuations.
-
Dividends are payable only when declared. There is no assurance that a company will continue paying dividends in the future.
-
The scheme aims to invest at least 95% of its net assets in securities of the benchmark index. As a result, the scheme will not be actively managed.
-
The scheme will invest solely in securities included in the underlying index. This approach exposes the scheme to additional concentration risk.
Past Performance of Nifty Bank ETF
|
Nifty Bank ETF |
NAV (Rs) |
Returns since inception |
Portfolio P/E Ratio |
|
Nippon India ETF Bank BeES |
491.93 |
16.77% |
10.48 |
|
Kotak Nifty Bank ETF |
492.71 |
10.72% |
15.52 |
|
SBI-ETF Nifty Bank |
487.77 |
11.25% |
15.52 |
|
UTI Nifty Bank ETF |
49.05 |
21.57% |
15.52 |
|
Aditya Birla Sun Life Nifty Bank ETF |
48.66 |
11.93% |
15.52 |
DSP Nifty Bank Index Fund NFO - Who can invest
This fund is ideal for individuals seeking to invest in the banking sector and aiming to achieve returns in line with the Nifty Bank Index. It allows investors to benefit from a diversified portfolio, though it comes with a high level of risk.
DSP Nifty Bank Index Fund NFO - Growth Fund Managers
-
Mr. Anil Ghelani
-
Mr. Diipesh Shah
Conclusion
The DSP Nifty Bank Index Fund allows investors to replicate the performance of the Nifty Bank Index and capitalize on its growth potential. It's an ideal option for those with a long-term investment horizon. However, it's important to evaluate your risk tolerance and investment goals before committing to this fund.
Disclaimer: This NFO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
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Frequently Asked Questions
The starting date of DSP Nifty Bank Index Fund – NFO is 15 May 2024.
The end date of DSP Nifty Bank Index Fund – NFO is 27 May 2024.
The fund managers of DSP Nifty Bank Index Fund – NFO are Mr. Anil Ghelani and Mr. Diipesh Shah.
The minimum investment for DSP Nifty Bank Index Fund– NFO is Rs. 100.
Yes, DSP mutual fund is one of the premier asset management companies in India, with more than 20 years of investment excellence.
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