DSP Investment Managers has launched DSP Nifty Midcap 150 Quality 50 ETF and DSP Nifty 50 ETF. This new quality-focused mid-cap ETF offers investors an option to invest in quality mid-cap companies with the potential of higher profitability, lower leverage & relatively stable earnings.
The second product, DSP Nifty 50 ETF, will invest in all the 50 companies from the Nifty 50 Index in line with the index.
DSP Nifty Midcap 150 Quality 50 ETF follows a zero-bias, rule-based strategy by replicating the Nifty Midcap 150 Quality 50 Index, without fund manager 'thinking' or emotions involved. This index selects 50 companies from the parent Nifty Midcap 150 index based on ‘Quality Scores’ using metrics like return on equity, financial leverage (except for financial services companies) & earning per share (EPS) growth variability of each stock analysed during the previous 5 financial years.
The ETF, therefore, offers investors a simple way to own the potential leaders of tomorrow. Being a passive fund, it will also have a lower expense ratio than most actively managed mid-cap funds.
DSP Nifty 50 ETF replicates the Nifty 50 Index, which follows a market-cap weighted strategy. In other words, each company in the portfolio is assigned weights based on free-float market capitalization. The DSP Nifty 50 ETF is suitable for those new to the stock markets or beginner-level MF investors. Experienced investors who are looking for lower-cost approaches to investing in the equity market can also consider investing in the ETF.
The New Fund Offer for both ETFs opens for subscription on December 6, 2021, and closes on December 17, 2021, after which it will be purchased and sold on the stock exchanges.
