DSP Nifty Healthcare ETF (NFO) is an open-ended exchange-traded fund (ETF) launched by DSP Mutual Fund on January 11th, 2024. It aims to track the Nifty Healthcare Total Return Index (TRI), providing returns that mirror the index’s performance before expenses, albeit with potential tracking errors. There’s no guarantee that the scheme will achieve its objective. The minimum investment amount is Rs 5,000, and there’s no entry load. For redemptions in creation unit size (bulk amount), there’s no exit load, while redemptions in other unit sizes can only be done through exchange transactions and don’t incur any exit load.
The scheme seeks to provide returns that, before expenses, correspond to the total return of the underlying index (Nifty Healthcare Index), subject to tracking error.
| Instruments | Indicative allocations (% of total assets) | Risk Profile |
| Equity and Equity Related Securities of companies constituting the Nifty Healthcare Index, the Underlying Index | 95% – 100% | Very High Risk |
| Cash and Cash Equivalents | 0% – 5% | Low to Medium Risk |
Cash and Cash Equivalents will include the following securities having residual maturity of less than 91 Days: TREPS, Treasury Bills, Government securities, and Repo on Government Securities.
Anil Ghelani, Age:43 years, Experience in industry: 36 years
Years in Strategy: 1 year, Tenure performance: 49.76%, Index performance: 49.25%
Diipesh Shah, Age:44 years, Experience in industry: 22 years
Years in Strategy: 2-year, Tenure performance: 9.85%
| Name of ETF | AUM (in crore) | NAV (in Rs) | Liquidity | Expense ratio | Tracking error | Month Change% | Qtr Change% | Year Change% |
| ICICI Prudential Nifty Healthcare ETF | 91.9 | 113.53 | Medium | 0.15% | 1.64% | 7.65% | 18.34% | 39.06% |
| Aditya Birla Sun Life Nifty Healthcare ETF | 37.1 | 11.33 | Low | 0.09% | 1.63% | 7.63% | 18.34% | 39.04% |
| Axis NIFTY Healthcare ETF | 15.1 | 113.19 | Low | 0.34% | 1.66% | 7.64% | 18.25% | 38.77% |
| Particulars | 6 M | YTD | 1 Y | 2 Y | 3 Y | 5 Y |
| Nifty 50 | 6.30% | -2.27% | 17.22% | 9.77% | 13.89% | 14.41% |
| Benchmark: NIFTY Healthcare TRI | 21.18% | 4.79% | 39.31% | 16.71% | 15.45% | 17.17% |
| Category Average | 10.78% | -0.46% | 21.25% | 12.57% | 14.82% | 14.17% |
Concentration Risk: This index provides exposure only to the Healthcare sector, leading to sector-level concentration risk. This index has only 20 stocks, thereby leading to stock-level concentration risk
High Volatility & Drawdown: This fund can have higher volatility & drawdowns as compared to diversified equity funds
Underperformance: This fund can underperform diversified equity funds in the short-term
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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