NFO Alert: DSP Mutual Fund Launches Nifty Healthcare and Nifty IT Index Funds

DSP Mutual Fund has filed scheme documents for 2 new sector-based index funds: DSP Nifty Healthcare Index Fund and DSP Nifty IT Index Fund. Both are open-ended schemes designed to replicate and track the performance of their respective indices, Nifty Healthcare TRI and Nifty IT TRI. These funds will be offered at ₹10 per unit during the New Fund Offer (NFO) period.

DSP Nifty Healthcare Index Fund

The Nifty Healthcare Index covers companies from pharmaceuticals, hospitals, diagnostics, and other healthcare-related sectors. The fund’s objective is to invest in equity and equity-related securities covered by this index and provide returns in line with its performance, subject to tracking error. The scheme is open-ended and does not propose listing on any stock exchange. 

Redemption proceeds are to be processed within three working days. Minimum application during the NFO is ₹100, and any amount thereafter. The same applies to investments made post-NFO under the continuous offer.

DSP Nifty IT Index Fund

The Nifty IT Index includes leading information technology companies from India. This index fund will similarly aim to mirror the performance of the Nifty IT TRI. Minimum investment criteria, redemption timelines, NAV disclosure process, and exit load conditions are identical to the healthcare index fund. Both funds have no exit load and support daily NAV updates. Units can be purchased or redeemed digitally or through physical application forms at investor service centres.

Additional Features

Both schemes offer facilities such as Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), and Systematic Withdrawal Plan (SWP), with a minimum instalment of ₹100. Investors can also opt for features like SIP Top-Up, SIP Pause, and pledge of units. ASBA applications will be accepted during the NFO, in line with SEBI guidelines.

Read more: NFO Alert: Tata Mutual Fund Launches Nifty Midcap 150 Index Fund

Conclusion

The NFOs for these 2 index funds will remain open for at least three and not more than fifteen working days, as per SEBI regulations. Post allotment, the schemes will reopen for ongoing purchases and redemptions based on NAV.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.