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DSP Mutual Fund has launched DSP Nifty Top 10 Equal Weight Index Fund & ETF.
The underlying index will invest equally in the top 10 companies by market cap.
In a press release, Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund, "While we have seen increasing level of interest in small and mid-cap stocks, the very large and mega cap stocks appear to be trading at relatively more attractive valuations. Sound investing principles suggest that it is always better to invest where there is a relatively lower valuation and margin of safety. Hence, we are considering an index which will have the largest ten stocks, in an equal weight strategy. The Nifty Top 10 Equal Weight Index can be part of long-term portfolios as it provides exposure to the largest companies which can help to reduce drawdowns during downturns and can also generate better returns over the long term."
