DSP Nifty Midcap 150 Index Fund NFO

DSP Nifty Midcap 150 Index Fund NFO Investment Objective:

(source: dspim.com)

Things to know before you invest:

1. This is an index fund that replicates the Nifty Midcap 150 Index – same stocks, same weights.
2. By matching the Nifty Midcap 150 Index, it allows you to invest in midcap companies.
3. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.

What is in DSP Nifty Midcap 150 Index Fund?

1. The Nifty Midcap 150 includes companies that are beyond the early-stage smallcap phase but have strong potential to grow into tomorrow’s large caps.
2. Midcaps often operate in emerging industries or niche segments that benefit from structural domestic growth trends.
3. Relatively low-cost, with a comparatively lower expense ratio than active mid-cap funds.
4. Can help you beat the impact of rising prices over the long-term.
5. Since the fund only replicates an index & does not have an ‘active’ fund manager, it carries no human decision-making bias.
6. With market leadership gradually shifting beyond the top 100 companies, the Nifty Midcap 150 allows investors to capture this expansion of market opportunity.

Why should one invest in DSP Nifty Midcap 150 Index Fund?

1. Consider this fund if you
   • Want exposure to India’s fast-growing mid-sized companies in a single, diversified fund.
   • Seek long-term wealth creation potential and are comfortable with higher volatility along the way.
   • Prefer low-cost, rules-based passive investing over high-fee active midcap strategies.
   • Can stay invested for 7-10 years or more, allowing time for midcaps to recover from temporary market corrections.
   • Understand that midcaps carry higher risks?sharper drawdowns and longer recovery periods than large caps.
   • Do not chase recent performance but instead believe in disciplined long-term investing in the midcap segment.

Who should invest in DSP Nifty Midcap 150 Index Fund?

1. DSP Nifty Midcap 150 Index Fund or ETF carries Very High Risk. Midcaps can experience sharper rises and deeper falls than large caps.
2. Expect significant short-term volatility, especially during periods of market stress. Midcap segments typically correct faster and take longer to recover.
3. Even though the fund invests in an Index, it is fully exposed to equity and midcap-specific risks. Temporary periods of steep drawdowns are possible.
4. Returns may be slightly lower than the index due to expense ratio, cash holdings, and tracking error.
5. Not suitable for short-term investors. Midcap investing works best over long horizons (7-10+ years) where volatility smoothens out.

(source: dspim.com)