February 5, 2025
mayank
DSP Nifty Private Bank Index Fund details, Fund Portfolio, Fund Returns, Peer Comparison, Mutual Fund Guidance @sahifund.com
Table of Contents:
- NFO Open date, Close date
- NFO Investment Strategy
- NFO Basic Details
- NFO Benchmark Index
- Performance Review of Fund Manager
- Should You Invest in this NFO?
- Invest Online
What is the DSP Nifty Private Bank Index Fund Open Date, Close Date?
NFO opens on February 14, 2025
NFO will close on February 28, 2025
Investment Strategy for this NFO?
The scheme is to generate returns that are commensurate with the performance of the Nifty Private Bank Index, subject to tracking error.
Basic Details
| Fund House | DSP Mutual Fund |
| Issue Open | 14 February 2025 |
| Issue Close | 28 February 2025 |
| Type | Open-ended |
| Category | Equity: Sectoral-Banking |
| Min. Investment(Rs) | 100 |
| Plans | Growth, IDCW |
| Lock-in Period | NA |
| Exit Load | 0 |
| Riskometer | Very High |
| Benchmark | Nifty Private Bank TRI |
About Benchmark Index for this NFO?
The Nifty Private Bank Index is designed to reflect the performance of the banks from private sector.
Nifty Private Bank Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETF’s and structured products.
Index Variant: Nifty Private Bank Total Returns Index
Portfolio Characteristics
| Methodology | Periodic Capped Free Float |
| No. of Constituents | 10 |
| Launch Date | January 05, 2016 |
| Base Date | April 01, 2005 |
| Base Value | 1000 |
| Calculation Frequency | Real-Time |
| Index Rebalancing | Semi-Annually |
Fund Managers of DSP Nifty Private Bank Index Fund
1) Anil Ghelani
Education: Mr. Ghelani has done B. Com., CFA & CA
Experience: Prior to joining DSP Mutual Fund he has worked with IL&FS, S. R. Batliboi, V. C. Shah & Co.
2) Diipesh Shah
Education: Mr. Shah is a B Com, ACA, Candidate of the CFA Program, CFA Institute USA, Level I Cleared
Experience: Prior to joining DSP Mutual Fund, he has worked with JM Financial, Centrum Broking, IDFC Securities, ICICI Securities and IIFL Capital Pte Ltd Singapore.
AMC
DSP Investment Managers Pvt. Ltd.
Address: NATRAJ, Office No. 302-3rd Floor-Plot No. 194, MV Road Junction Western Express Highway, Andheri East Mumbai – 400069
Website: https://www.dspim.com/
Registrar & Transfer Agent
Computer Age Management Services Ltd.
Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai – 600002
Website: www.camsonline.com
Review for DSP Nifty Private Bank Index Fund @ sahifund.com by Paresh Gordhandas, C.A. & Research Analyst
[A] Benchmark Performance of Nifty Private Bank TRI
Performance
| Index Returns (%)# | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | -1.59 | -1.59 | 3.35 | 7.56 | 17.46 |
| Total Return | -1.59 | -1.59 | 4.18 | 8.10 | 18.39 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 16.98 | 26.32 | 28.61 |
| Beta (NIFTY 50) | 1.02 | 1.22 | 1.17 |
| Correlation (NIFTY 50) | 0.83 | 0.89 | 0.87 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 14.24 | 2.21 | 0.6 |
Top constituents by weightage
| Company’s Name | Weight(%) |
| Kotak Mahindra Bank Ltd. | 22.23 |
| ICICI Bank Ltd. | 20.54 |
| HDFC Bank Ltd. | 20.17 |
| Axis Bank Ltd | 18.77 |
| IndusInd Bank Ltd. | 6.46 |
| Federal Bank Ltd. | 4.52 |
| IDFC First Bank Ltd. | 3.86 |
| Bandhan Bank Ltd. | 1.24 |
| City Union Bank Ltd. | 1.23 |
| RBL Bank Ltd. | 0.97 |
Note on Benchmark Performance:
There are large number of investors who are fond of private sector banks and their strong growth potential in the Indian economy, and they are correct in their belief. Because of more efficiency and technology driven focus, the private banks have strong growth potential and earnings capability. This scheme aims to generate returns that are commensurate with the performance of the Nifty Private Bank Index, subject to tracking error.
In spite of strong confidence in the performance of the private sector banks, the benchmark index has not provided impressive returns during last 5 years due to varied reasons. Since inception, the index has provided 18.39% p.a. returns, whereas during last one year, the index has provided meagre return of 4.18%.
[B] Performance Review of the Fund Managers of this NFO
Past Performance of Anil Ghelani
| Fund | DSP Nifty 50 Equal Weight Index Fund | It’s Benchmark | DSP Nifty 50 Index Fund | It’s Benchmark |
| 1 Year | 8.63 | 11.18 | 9.63 | 11.18 |
| 3 Year | 15.41 | 13.32 | 11.71 | 13.32 |
| 5 Year | 19.99 | 17.08 | 15.55 | 17.08 |
| 7 Year | 13.40 | 13.67 | — | — |
| 10 Year | — | — | — | — |
As on 5-02-2025
Past Performance of Diipesh Shah
| Fund | DSP NIFTY 50 Equal Weight ETF | It’s Benchmark | DSP Nifty 50 ETF | It’s Benchmark |
| 1 Year | 8.81 | 11.18 | 9.80 | 11.18 |
| 3 Year | 15.58 | 13.32 | 11.91 | 13.32 |
| 5 Year | — | — | — | — |
| 7 Year | — | — | — | — |
| 10 Year | — | — | — | — |
As on 5-02-2025
Note on Fund Managers’ performance
As you know, the Fund managers are like pilots navigating through both turbulent and calm skies. Their ability to manage the fund effectively during both challenging and favorable times is key. Therefore, analyzing the historical performance of fund managers is important to gauge their future potential. We have reviewed two schemes managed by these fund managers, and as noted above, their past performance has been somewhat underwhelming. (as mentioned above). This we consider as negative factor in analyzing this NFO.
[C] Conclusion
Considering the two key factors mentioned above, along with concerns about the turbulent times the Indian economy is currently facing and the global economic slowdown, it is unlikely that private sector banks will deliver the anticipated returns of 18-20%. However, many private sector banks have strong provision coverage ratios, and their non-performing assets (NPAs) are minimal. In fact, these banks have adopted a more cautious approach following their previous experiences with large write-offs. Therefore, we expect the private sector bank index to outperform over the next five years. We recommend making a small investment in this NFO as a long-term strategy.
Is it good to invest in DSP Nifty Private Bank Index Fund NFO?
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