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DSP Mutual Fund has launched its NFO i.e., new fund offer, which is based on etf and this ETF is based on the Nifty Midcap 150 Quality 50 Stocks index It is benchmarked against Nifty Midcap 150 Quality 50 TRI.
The DSP Nifty Midcap 150 Quality 50 ETF is Best ETF Mutual Funds NFO to Invest in 2021 that will invest in centralized stocks. DSP Nifty Midcap 150 Quality 50 ETF is an ETF focused on medium value. DSP Nifty Midcap 150 Quality 50 ETF Nifty Midcap 150 Quality 50 follows a neutral, policy-based strategy by repeating the index without incorporating the ‘ideas’ or opinions of fund managers. It aims to provide the consistent return provided by the Nifty Midcap 150 Quality 50 Total Return Index (NMQ50).
In terms of return Nifty Midcap achieved Nifty 50 which made from 2005 to 2021 gave annual return cag of 17 percent and nifty 50 gave only 15% profit. We will compare the sip if someone can start drinking in 2005 in the nifty 150 quality stock and then the Nifty Midcap 150 will bring 20 returns and the mid cap index will bring only 70 percent.
Smart investors accept that when one invests in high-risk stocks in search of high returns. In the new DSP Nifty Mid Cap 150 Quality 50 ETF, it is important to diversify enough portfolio to reduce the overall portfolio risk. No stock can weigh more than 5 percent by design, which means access to high-quality companies, even from the mid-cap universe. There is a certain risk reduction and greater diversification of stocks and is based on a pre-determined framework where no active decision is taken by any fund manager for stock selection, which means no bias, no passion. The cost of an ETF index should be lower than that of a perpetual fund, which benefits investors. Therefore, ETFs provide an easy way for investors to become potential future leaders. As a passive fund, we will have a lower cost ratio than most hard-earned funds. It allows investors to customize the portfolio to suit their financial needs, risk tolerance and investment horizon.
The best way to measure risk and reward is to focus on the ‘quality’ of the average stock. Focusing on quality while choosing a medium-term stock ensures that the portfolio meets lower volatility compared to that of the midcap index. stock updated over the last five financial years.
Top 10 companies Weights (%)
| Page Industries Ltd. | 4.6 |
| Crompton Greaves Consumer Electricals | 4.2 |
| Tata Elxsi Ltd. | 4.0 |
| Mindtree Ltd. 3.6 | 3.6 |
| Mphasis Ltd. 3.4 | 3.4 |
| L&T Technology Services Ltd. | 3.2 |
| Supreme Industries Ltd. | 2.9 |
| Voltas Ltd. | 2.8 |
| Deepak Nitrite Ltd. | 2.6 |
| Atul Ltd. | 2.5 |
Sector Weightage
For new or experienced investors looking to strengthen their core portfolio, the DSP Nifty 50 ETF could be a good option at a lower cost. It offers investors the opportunity to invest in medium-sized companies with high profitability, low power and sustainable profitability. Wise investors recognize that when a person invests in high-risk stocks in pursuit of higher profits.
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Disclaimer
All the information are used for education purpose only. Investing in mutual funds poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.
