Asset management company DSP Mutual Fund has applied for three schemes -- S&P BSE BFSI Next Index, Nifty Bank ETF, Nifty Midcap 150 Quality 50 Index -- with the markets regulator, the Securities and Exchange Board of India (Sebi).
DSP Mutual Fund is the 10th biggest fund house in India with average assets under management of ₹1.11 trillion for October-December.
DSP S&P BSE BFSI Next Index Fund, which is benchmarked against the S&P BSE Diversified Financials Revenue Growth Index, is an open-ended scheme replicating or tracking S&P BSE Diversified Financials Revenue Growth Index. The index is designed to measure the performance of non-state-owned companies from the S&P BSE 500 in the finance sector.
The top stocks in the base index are, SBI Life Insurance Company Ltd (5.4%), ICICI Bank Ltd (5.2%), HDFC Bank Ltd (5.1%), Bajaj Finance Ltd (5.0%), HDFC Life Insurance Company Ltd (5.0%). The fund managers to the index are Anil Ghelani and Diipesh Shah.
The next index, DSP Nifty Bank Exchange-Traded Fund (ETF) would track the Nifty Bank Index, which is comprised of the most liquid and large capitalized Indian banking stocks.
As per the scheme information document (SID), the top five stocks in the index in terms of weightage are HDFC Bank Ltd. (27.80%), ICICI Bank Ltd. (22.62%), Kotak Mahindra Bank Ltd. (11.61%), State Bank of India (11.45%) and Axis Bank Ltd. (11.52%).
There are already 10 schemes, including an index fund, available in the Indian market based on the Nifty Bank Index.
DSP has also filed for a Nifty Midcap 150 Quality 50 Index that will track the Nifty Midcap 150 Quality 50 Total Return Index (TRI). The fund house had launched an ETF based on the index in December 2021.
The Nifty Midcap150 Quality 50 index includes the top 50 companies from its parent Nifty Midcap 150 index, selected based on their ‘quality’ scores.
The quality score for each company is determined based on return on equity, financial leverage (except for financial services companies) and earning per share (EPS) growth variability of each stock analyzed during the previous five financial years.
The top stocks in the index are ICICI Securities Ltd., Mindtree Ltd., Page Industries Ltd, Tata Elxsi Ltd. and Crompton Greaves Consumer Electricals Ltd.
