DSP Mutual Fund has introduced two new offerings—the DSP BSE Sensex Next 30 Index Fund and DSP BSE Sensex Next 30 ETF, marking an industry-first initiative. These open-ended equity schemes are designed to track the BSE Sensex Next 30 Index, providing investors an opportunity to invest in the 30 largest companies beyond the BSE Sensex. These companies are recognized for their growth potential and could emerge as the next market leaders.
The BSE Sensex Next 30 Index focuses on the mid-segment of the large-cap universe, housing fast-growing leaders and challengers that are often underrepresented in traditional large-cap indices. While many large-cap indices allocate only 10-40% to this segment, the DSP funds emphasize this unique space, offering a differentiated and diversified investment approach.
The index includes a diverse range of sectors:
- Financial Services: 19% (compared to 38% in BSE Sensex)
- Consumer Discretionary: 18%
- Commodities: 18%
- Energy: 10%
- Healthcare: 10%
- FMCG: 8%
- Industrials: 8%
This broad sectoral representation ensures exposure to emerging market leaders and mitigates over-reliance on any single sector.
As of December 31, 2024, the BSE Sensex Next 30 Index has delivered annualized returns of 14.4% over the last 10 years, outperforming the BSE Sensex in seven out of the last 10 calendar years. However, the index has experienced higher drawdowns historically, offering a balanced risk-reward profile for long-term investors.*
“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 both schemes will be open from January 10 to January 24, 2025. Investors can opt for lump-sum investments or Systematic Investment Plans (SIPs) to align with their financial objectives.
With its low overlap with other major large-cap indices, these funds are positioned as an attractive option for investors seeking diversified exposure within the large-cap segment.
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