DSP Mutual Fund launches Nifty FMCG ETF; NFO open till May 14

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DSP Asset Managers has launched the DSP Nifty FMCG ETF, an open-ended exchange traded fund (ETF) that seeks to replicate and track the Nifty FMCG Index, the fund house said on Tuesday (May 12).

The ETF will invest in the constituent companies of the index in the same proportion as the benchmark, subject to tracking error. The scheme is designed to offer investors exposure to listed fast-moving consumer goods (FMCG) companies spanning categories such as packaged foods, beverages, personal care and household products.

According to the fund house, the underlying Nifty FMCG Index comprises 15 FMCG companies listed on the National Stock Exchange of India. These companies manufacture products that are part of everyday consumption across Indian households.

DSP Mutual Fund said the FMCG sector has historically been linked to India’s domestic consumption growth and has shown relatively resilient demand across market cycles. The fund house also noted that demand for daily-use consumer products continues to be driven by household spending patterns.

The new fund offer (NFO) for the ETF opened on May 12 and will close on May 14. The scheme will reopen for continuous sale and repurchase on May 22.

Anil Ghelani, Head – Passive Investments & Products at DSP Mutual Fund, said valuations in the FMCG sector are currently below their long-term historical averages, while consumption-driven demand for everyday products continues to support the segment.

The scheme will be managed by DSP Mutual Fund’s passive investment team.



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