DSP Investment Managers launches Nifty Midcap 150 Quality 50 Index Fund

As the name suggests, the scheme will replicate the Nifty Midcap 150 Quality 50 Index, consisting of 50 companies from the parent Nifty Midcap 150 Index, based on ‘quality scores’, such as return on equity, financial leverage (financial leverage). excluding service companies) and the earnings per share or EPS growth variability of each stock. “Quality shouldn’t be expected purely by chance—it requires careful, intelligent effort. This is especially important for those looking to invest in midcap stocks. The midcap space is home to many such stocks.” Notorious ones that have potential that never gets realized – our data shows that more than 4 out of 5 medium-sized companies in India never grow to be market leaders or blue chips – which is when That’s when higher returns can be unlocked,” says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Investment Manager.

According to the fund house, this scheme offers investors an easy way to own the potential leaders of tomorrow, with an opportunity to earn big returns using this high-risk, high-return strategy. The fund presentation highlights that Nifty Midcap 150 Quality 50 TRI (Total Return Index) since its inception has outperformed its parent index, Nifty Midcap 150 TRI, i.e., by 15.8% by the parent index (April). Compared to 18.8% returned. 2005 to June 2022). Nifty Midcap 150 Quality 50 TRI has outperformed the parent index in 11 of the 17 calendar years since 2005.

The Quality Index has declined by 5.5% in the past one year, while the Basic Index has declined by 0.4%. As per the presentation, historically, short-term underperformance by quality indices has been followed by future outperformance, making it a good time to invest in the index. As of June 30, Tata Alexei, Page Industries, Indian Energy Exchange, Crompton Greaves Consumer Electricals and AU Small Finance Bank were the top five stocks in the Nifty Midcap 150 Quality 50 index.

Another fund house, UTI Mutual Fund also launched Nifty Midcap 150 Quality 50 Index Fund a few months back in April.

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