DSP BSE Sensex Next 30 Index Fund will be an open ended scheme replicating/ tracking BSE SENSEX Next 30 Index. DSP BSE Sensex Next 30 ETF will be an open ended scheme replicating / tracking BSE SENSEX Next 30 Index.
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The new fund offer or NFO of the schemes will open for subscription on January 10 and will close on January 24. The schemes will reopen for continuous sale and repurchase within five business days of allotment.
Both the schemes will be benchmarked against BSE SENSEX Next 30 TRI and will be managed by Anil Ghelani and Diipesh Shah. The exit load applicable will be nil. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (b) is upto 1%.
The minimum application amount during the NFO will be Rs 100 and any amount thereafter in DSP BSE Sensex Next 30 Index Fund and Rs 5,000 and in multiples of Re 1 thereof in DSP BSE Sensex Next 30 ETF. The schemes will allocate 95-100% in equity and equity related securities of companies constituting the BSE SENSEX Next 30 Index, the underlying index, 0-5% in cash and cash equivalents.The investment strategy would revolve around minimizing the tracking error through periodic rebalancing of the portfolio, taking into account the change in weights of stocks in the indices as well as the incremental subscriptions / redemptions in the scheme. A small portion of the net assets may be held as cash and cash equivalents to meet the liquidity requirements under the scheme.Also Read | These 12 equity mutual funds offered negative returns in 9 months. Do you own any?
The schemes will be suitable for investors who are looking for long-term capital growth and want investment in equity and equity related securities covered by BSE Sensex Next 30 Index, subject to tracking error.
The principal invested in both the schemes will be at “very high risk” according to the riskometer of the scheme.
