DSP Mutual Fund Launches DSP Nifty Private Bank Index Fund
Hyderabad: DSP Mutual Fund introduces the DSP Nifty Private Bank Index Fund, an open-ended scheme tracking the Nifty Private Bank Index, offering targeted exposure to India’s private banking sector.
This fund focuses on the four largest private banks, comprising 80% of the index, benefiting from higher customer trust, better access to capital, and economies of scale. Indian private banks have doubled their market share over two decades while maintaining strong balance sheets and profitability. Despite recent underperformance, the sector’s valuations are below the 10-year average, signaling a potential turnaround.
Anil Ghelani, CFA, Head of Passive Investments & Products, DSP Mutual Fund, said, “The dominance of larger banks in the Nifty Private Bank Index mirrors global trends, making this fund a strategic investment opportunity.”
Diipesh Shah, Fund Manager, DSP Mutual Fund, added, “This fund offers a tax-efficient way to invest in private banks, with many constituents trading below historical valuations, presenting an attractive entry point.”
The New Fund Offer (NFO) runs from February 14 to February 28, 2025, with options for lump-sum investments or Systematic Investment Plans (SIPs).