DSP Mutual Fund launches industry’s first BSE Sensex Next 30 Index Fund and ETF

DSP Mutual Fund has announced the launch of the DSP BSE Sensex Next 30 Index Fund and DSP BSE Sensex Next 30 ETF. These are open-ended equity schemes tracking BSE Sensex Next 30 Index, aiming to provide investors with an opportunity to gain exposure to the 30 largest companies beyond the BSE SENSEX, which are poised for growth and could be the next set of leaders.

The BSE Sensex Next 30 Index includes companies that are not part of the BSE SENSEX but represent significant market capitalization and potential for future growth. This index brings a differentiation by focusing on the middle segment of the large cap universe. This segment houses some of the fastest growing large cap leaders and challengers but is often under-represented in most existing large cap indices with an allocation of just 10-40%.

The index offers diversification by providing exposure to a broader range of companies, allowing investors to tap into emerging market leaders across various sectors. Financial Services account for only 19% compared to 38% in BSE Sensex, while Consumer Discretionary and Commodities contribute 18% each. The index also maintains meaningful exposure to Energy (10%), Healthcare (10%), FMCG (8%), and Industrials (8%), providing investors access to a well-diversified portfolio of quality large-cap companies. *

As of 31-Dec-2024, the BSE Sensex Next 30 Index has delivered annualized returns of 14.4% in the last 10 years and has outperformed BSE Sensex in 7 of the last 10 calendar years. On the flip side, the index has had higher drawdowns historically when compared to BSE Sensex.*

“Currently, the large cap segment seems to be better placed in terms of risk versus reward and our new launch offers exposure to a differentiated pocket within this segment. Companies part of BSE Sensex Next 30 Index have historically been strong wealth creators, with 20 stocks graduating up to become part of the BSE Sensex in the last decade. Given its low overlap with other major large cap indices, this fund is suitable for all investors with a long-term investment horizon including those who have already invested in other large cap index funds and now want to have a little different exposure,” said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Asset Managers.

The New Fund Offer (NFO) for the DSP BSE SENSEX Next 30 Index Fund and DSP BSE SENSEX Next 30 ETF will be open from January 10 to January 24, 2025. Investors can choose between lump-sum investments or systematic investment plans (SIPs) to align with their financial goals.

* Source – BSE, Internal. Data as on 23 Dec 2024