DSP Mutual Fund announced the launch of the first-ever ‘Quality-Focused’ Smallcap Fund DSP Nifty Smallcap250 Quality 50 Index Fund(DSP NSQ50IF), an open-ended scheme tracking Nifty Smallcap250 Quality 50 Index. The Nifty Smallcap250 Quality 50 Index selects 50 stocks from the 250 stocks in the Nifty universe using exclusion and stock selection criteria. Quality filters include Return on Equity, Debt to Equity, and Earnings Per Share. The index identifies companies with higher return on equity and lower leverage compared to the broader Nifty Smallcap250.
Investors are advised to buy DSP NSQ50IF via the SIP route due to its consistent 10-year returns, better returns compared to the broader Index, and similar returns regardless of market fluctuations. In fact, during periods like 10thDecember 2007 to 10thNovember 2010, 10thNovember 2010 to 19thMay 2014 and 15th January 2018 to 16th March 2021,whena lumpsum in the broader index gave 0% returns, SIPreturns in the broader Index were anything between 18 to 41% and that in the Quality Index would have been between 20 to 52% in the same time periods.
Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund said, “We recommend investors to invest in DSP NSQ50IFfor the long term via the SIP route for a better experience across market cycles.”
