DSP Mutual Fund announced the launch of DSP Nifty FMCG ETF, an open-ended exchange-traded fund designed to replicate/track the Nifty FMCG Index. This fund aims to help investors participate in a few of the leading FMCG companies across categories such as household products, personal care, beverages, and staples, etc. by tracking the Nifty FMCG Index, subject to tracking error.
The new fund offer, or NFO, of this passive fund is open for subscription and will close on May 14. The scheme will reopen for continuous sale and repurchase on May 22.
Also Read | HDFC Defence Fund increase stake in HAL, Bharat Electronics & 6 other stocks in April
The Nifty FMCG Index comprises 15 FMCG companies listed on the National Stock Exchange. These include businesses manufacturing products that are part of everyday consumption across Indian households - from packaged foods, beverages, and personal care products to other daily-use essentials.
The FMCG sector has historically remained closely linked to India’s domestic consumption growth and has demonstrated relatively resilient demand across market cycles. Unlike several sectors currently undergoing rapid technological disruption, demand for everyday consumption products continues to remain closely linked to household spending patterns.
The scheme will invest in the constituent companies of the Nifty FMCG Index in the same proportion as the underlying index and will be managed by DSP’s dedicated passive investment team.
“Valuations in the FMCG space are currently below their 5-year, 10-year and 15-year averages, offering relatively better valuation comfort compared to recent years. At the same time, FMCG businesses continue to remain closely linked to everyday consumption demand, with growth driven by categories and products that are deeply embedded in daily life,” said Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.
Also Read | Gold and silver ETFs rally up to 15% after government raises import duty. What should investors do?
Through the DSP Nifty FMCG ETF, investors can gain diversified exposure to this segment in a simple, transparent and cost-efficient passive format, Ghelani further said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.
