DSP Blackrock Investment Managers Pvt. Ltd has launched its first passive fund—DSP BlackRock Equal Nifty 50 Fund. This is an equity fund that relies on automatic allocation in stocks that constitute the Nifty 50 basket.
What is it?
As mentioned above the fund will follow a passive strategy, which requires no intervention from fund managers when it comes to deciding which stocks to buy and in what proportion. The fund portfolio will comprise all the stocks that are there in the Nifty 50 index.
Additionally, the mandate is to have equal weight in all stocks, which means each of the stocks in the Nifty 50 index will be held in a proportion of 2% in this fund. The benchmark for the fund is Nifty 50 Equal Weight Index.