NFO Update: DSP BSE Sensex Next 30 Fund ETF Launched - Check Details

Mutual funds are gaining popularity among investors. The month of December of FY 2024-25 saw an inflow of Rs 41,155 crore in equity mutual funds, compared to Rs 35,943.4 crore seen in November indicating a 14.49 per cent increase.

Keeping in mind the increasing popularity of mutual funds as an asset class, DSP Mutual Fund House has launched a new fund called DSP BSE Sensex Next 30 ETF. ETF or Exchange Traded Funds are passively managed products which provide exposure to an index or a collection of securities with an objective of generating returns.

ETFs provide liquidity and availability of real-time market prices on the stock exchange. Since they are listed on the exchanges, they can be bought and sold like stocks. Here’s a look at some key details of the DSP BSE Sensex Next 30 ETF:

DSP BSE Sensex Next 30 ETF: Key Dates

The launch date for the DSP BSE Sensex Next 30 ETF is January 11, 2025. The new fund offer will close for subscription on January 24, 2025.

DSP BSE Sensex Next 30 ETF: Subscription Amount

Investors interested in applying for the ETF can subscribe by paying Rs. 5,000 during the NFO period and in multiples of Re. 1/- after the NFO period is over. The units of the scheme can be purchased and sold in a minimum lot of 1 unit and in multiples thereof after the ETF has been listed on the exchanges.

DSP BSE Sensex Next 30 ETF: Objective

The DSP BSE Sensex Next 30 ETF is an open-ended scheme which aims to replicate the BSE Sensex Next 30 Index. The investment objective of the scheme is to generate returns which are commensurate with the performance of the BSE Sensex Next 30 Index, subject to tracking error.

The BSE Sensex Next 30 index tracks the next 30 largest and most liquid companies in BSE 100 which are not a part of the 30-share benchmark BSE Sensex. Constituents of the index include Trent Ltd., Bajaj Electronics Ltd., Bajaj Auto Ltd. and Oil And Natural Gas Corporation Ltd.

DSP BSE Sensex Next 30 ETF: Listing Details

The units of DSP BSE Sensex Next 30 ETF are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited to provide liquidity through the secondary market. The units of the scheme can be bought and sold on all trading days on the National Stock Exchange of India Limited and BSE after listing.

DSP BSE Sensex Next 30 ETF: What Does The Fund Invest In

The corpus of DSP BSE Sensex Next 30 ETF will be invested in all the stocks constituting the BSE Sensex Next 30 Index, in the same weightage as the Index. The scheme will allocate a minimum of 95 per cent and a maximum of 100 per cent of its investments in equity and equity-related securities of companies constituting the BSE Sensex Next 30 Index. The scheme will invest a maximum of 5 per cent in cash and cash equivalents.

DSP BSE Sensex Next 30 ETF: Who Is It Ideal For

As per the scheme document the DSP BSE Sensex Next 30 ETF is ideal for investors who are seeking long-term capital growth and investment in equity and equity-related securities covered by the BSE Sensex Next 30 Index, subject to tracking error.