DSP Mutual Fund is set to revolutionize investment strategies with the launch of India’s inaugural Nifty Top 10 Equal Weight Index Fund and ETF. Opening for subscription on August 16 and closing on August 30, 2024, this innovative fund aims to tap into the undervalued top 10 companies in the Nifty index, equally weighting investments to enhance returns and mitigate risks.
The Nifty Top 10 Equal Weight Index has outperformed the Nifty 50 and Nifty 500 indices in nine of the past 16 years, showcasing its long-term potential. Despite a recent lag in performance, the index’s current low weight relative to total market capitalization and its historical trend suggest a promising turnaround.
Anil Ghelani, CFA, Head – Passive Investments & Products at DSP Mutual Fund, highlighted the fund’s strategic advantage: “With growing interest in small and mid-cap stocks, large-cap stocks are now trading at more appealing valuations. The Nifty Top 10 Equal Weight Index offers a unique opportunity for long-term gains, providing exposure to top companies while reducing drawdowns during market corrections.”
