DSP Nifty Midcap 150
Quality 50 ETF
This simple way to own the potential leaders of tomorrow which offers you a chance to 'earn big' returns by utilizing this high-risk, high-return strategy
Invest in ‘quality’ 50 mid-cap companies with higher profitability, lower leverage & more stable earnings
Invests in each stock similarly to the Nifty Midcap 150 Quality 50 Index, without any bias, no fund manager 'thinking' or emotions involved
Comparatively lower expense ratio than actively managed mid-cap funds
To buy just 1 share of each stock in Nifty Midcap 150 Quality 50 Index (as of Oct 29, 2021), you will need to pay over ₹2.2 Lakh + brokerage.
But this ETF allows you to buy same 50 stocks starting as low as ₹5,0002 (during the NFO period)
23X growth over the last 16 years: ~An investment of Rs 1 lakh at inception would have become ~Rs 23 lakh today3!
~21% CAGR3 since inception: Over a 16 years+ period
~19% median CAGR over any 10 year period4
100% outperformance over any 5 or 10 year period, over the Nifty Midcap 150 Index4
Disclaimer:
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
These figures pertain to performance of the index and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.
50 companies are selected from the parent Nifty Midcap 150 index based on ‘Quality Scores’
Scores based on 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.
Weight of each stock is based on a combination of the stock’s quality score & its free float market capitalization.
Expect short-term out-performance or under-performance in this fund, esp. during periods of market fluctuations.
-53% in 1 year: Lowest ever 1-year performance4
+171% in 1 year: Highest ever 1-year performance4
Over any 1-year period, the Nifty Midcap 150 Quality 50 Index has given.
Negative returns
21% of the time3
More than 12% return
59% of the time3
Consider this ETF if you have a strong core portfolio & are looking to invest in strategic opportunities. We recommend a 10% upper limit.
Equity investing means exposure to risk – thus having a long-term (7+ years) outlook is key to maximizing outcomes.
This is a high-risk strategy and suitable for experienced investors or those who have access to expert advice.
You need a trading account with a broker/ sub-broker
You also need a Demat account for holding the ETF units
No problem, invest in the DSP Mid Cap Fund – a similar strategy that invests in mid-cap companies in an active fund format
What is an ETF?
Exchange Traded Funds, or ETFs, are a type of funds/schemes that track an index, sector, commodities or other assets, but which can be purchased or sold on the stock exchange like any regular stock. They combine the features and potential benefits of stocks or bonds and mutual funds. Like individual stocks, ETFs can be traded throughout the day at real time prices that change based on supply and demand.
What are the benefits of an ETF?
Simplicity - Buying / Selling ETFs is as simple as buying / selling any other stock on the exchange.
Realtime Trading - ETFs allow investors to take benefit of intraday movements in the market, which is not possible with open-ended Funds.
Low cost - The cost of investing in ETFs is generally lower than an active fund invested in the same market of assets.
Seamless trading - Existing investors insulated from bearing transaction costs of other investors coming in or going out.
Transparency - Holdings published daily, so investor always knows exactly what is owned.
What do you need to invest in an ETF?
You need a trading account with a broker/ sub broker and a demat account to hold the ETF units. Without these two, you won’t be able to invest in any ETF.
Is there any other existing product based on the Nifty Midcap 150 Quality 50 Index?
No.
This is the first passive product in the mutual fund industry based on Nifty Midcap 150 Quality 50 Index. No other index fund or ETF exists, based on this index.
Who is the fund manager for the fund?
Mr. Anil Ghelani and Mr. Diipesh Shah will be the fund managers of the ETF.
Data Source for any statistics/ figures above unless otherwise mentioned: Internal
1Quality 50 companies are selecting by applying Quality Scores, based on 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.
2During the NFO period, you can invest as low as Rs 5,000. Note that unit allotment (if you invest during the NFO period) will be made at the index price on the date of allotment, not the face value. Once the ETF lists and reopens for investments, you can buy as low as a single unit of the ETF depending on the prevalent market price of the ETF at that point on the exchanges NSE or BSE.
3 From Apr 1, 2005 till Oct 29, 2021. Source: NSE, Internal
4 Rolling returns basis, time period Apr 1, 2005 till Oct 29, 2021. Source: NSE, Internal
For more information, product labeling & riskometers of DSP Mid Cap Fund & its benchmark, click here.
This material is for information purposes only. In this material DSP Investment Managers Private Limited (the AMC) has used information that is publicly available, including information developed in-house. For scheme specific risk factors and more details, please read the Scheme Information Document, Statement of Additional Information and Key Information Memorandum of the Scheme available at ISC of AMC and also available on www.dspim.com.
DSP NIFTY MIDCAP 150 QUALITY 50 ETF - An open-ended scheme replicating/ tracking Nifty Midcap 150 Quality 50 Index
This product is suitable for investors who are seeking*
Long-term capital growth.
Investment in equity and equity related securities covered by Nifty Midcap 150 Quality 50 Index, subject to tracking error.
*Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them.
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Benchmark Nifty Midcap 150 Quality 50 TRI
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It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Limited.
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of NSE'.
