DSP Mutual Fund to launch two index funds on Feb 11; offers to close on February 15

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DSP Mutual Fund will launch DSP Nifty 50 Index Fund and DSP Nifty Next 50 Index Fund on February 11, a release from the fund house stated.

The open-ended index schemes, which seeks to replicate the performance of the Nifty and Nifty Next 50 respectively, will remain open for subscription until February 15.

The Nifty tracks the performance of the top 50 companies in India by market capitalisation (m-cap). The index invests in market leaders from different sectors and represents the economy through time.

The Nifty Next 50 index tracks 51 to 100 stocks ranked by m-cap. This index tries to capture companies that may become the mega caps of tomorrow. Both indices operate in the largecap space as defined by the Securities Exchange Board of India (SEBI).

DSP Nifty 50 Index Fund and DSP Nifty Next 50 Index Fund will be managed by Gauri Sekaria. The latter has been Vice President of ETFs and Passive Investments at DSP Investment Managers Pvt since January 2017 and serves as its Portfolio Manager.

Commenting on launch of the new funds, Kalpen Parekh, President, DSP Mutual Fund, said, “We are seeing increasing awareness and demand in the passive space in India, which has grown from Rs 9,000 crore in 2008 to over Rs 1 lakh crore in August 2018.”

DSP Mutual Fund had launched their first fund on the passive platform in 2017.