DSP Mutual Fund has launched the DSP Nifty Private Bank Index Fund, an open-ended scheme designed to track the Nifty Private Bank Index. This fund offers a focused investment opportunity in India’s private banking sector, allowing investors to participate via lump-sum investments or Systematic Investment Plans (SIPs). The NFO is open from February 14 to February 28, 2025.
This fund primarily invests in India’s top four private sector banks, which make up nearly 80% of the index. It aims to capitalize on the sector’s long-term growth and profitability, despite its recent underperformance. As per the fund house, current valuations are below the 10-year average, indicating a potential turnaround.
Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund, stated:
“The dominance of larger banks within the Nifty Private Bank Index offers a strategic advantage. Leading banks globally benefit from customer trust, better capital access, and economies of scale. This fund provides a simplified route to invest in India’s private banking sector.”
Diipesh Shah, Fund Manager at DSP Mutual Fund, added:
“The DSP Nifty Private Bank Index Fund presents a tax-efficient way to invest in the private banking sector. Unlike direct stock investments, mutual funds do not incur capital gains tax on rebalancing or dividends. With many index constituents trading below historical averages, this presents an attractive entry point.”
Bandhan Nifty Next 50 Index Fund
Bandhan Mutual Fund has introduced the Bandhan Nifty Next 50 Index Fund, an open-ended scheme that mirrors the Nifty Next 50 Index. This index consists of 50 companies positioned just below the Nifty 50, offering a blend of large-cap stability and mid-cap growth potential. The NFO is open from February 12 to February 25, 2025.
Following a Free Float Market Capitalization-based weighting methodology, the Nifty Next 50 Index undergoes rebalancing twice a year, in March and September. This fund is ideal for investors looking for diversified exposure across high-growth industries with a potential for long-term gains.
Investments will be allocated in alignment with the Nifty Next 50 Index, aiming to closely match the index’s total returns, subject to tracking errors.
📌 Investment Details:
✅ Minimum Lump Sum Investment: ₹1,000 (increments of ₹1 thereafter)
✅ Minimum SIP Investment: ₹100 (increments of ₹1 thereafter, minimum of six installments)
Vishal Kapoor, CEO of Bandhan AMC, commented:
“The Nifty Next 50 Index offers exposure to well-established companies in their high-growth phase across multiple sectors, including consumer discretionary, FMCG, and IT. Over the past nine years, 24 companies from this index have entered the Nifty 50, reinforcing its role as a launchpad for future market leaders. With a recent 20% correction in the index pushing it below its five-year average, we see a compelling opportunity for long-term investors.”
