DSP Mutual Fund announced the launch of DSP Nifty Healthcare ETF, an open-ended scheme replicating/ tracking Nifty Healthcare Index that offers investors the opportunity to participate in India’s growing healthcare sector. The Nifty Healthcare Index covers diversified themes like pharmaceuticals, hospitals, pathology, healthcare research analytics & technology. It adjusts or rebalances every 6 months to represent the top 20 stocks (companies from healthcare sector) based on free float market cap from the Nifty 500 universe.
India’s healthcare market cap has grown at a decent rate of around 10% in the last 10 years. India’s healthcare sector currently accounts for 5.8% of the country’s market capitalization, a low percentage compared to its developed and emerging market peers. However, the government plans to allocate 2.5% of GDP for healthcare by FY25, aiming for a healthier nation and potential benefits for healthcare businesses.
Foreign Direct Investments in healthcare has seen an 8% CAGR increase from FY13 to FY23. Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund, said, “While the Nifty Healthcare Index is diversified across pharmaceuticals, hospitals, pathology and healthcare research and technology, being a sector fund, it could have relatively higher risk commensurate with the return potential.”The New Fund Offer for DSP Nifty Healthcare ETF will open for subscription on January11th, 2024, and will close on January25th, 2024.
