The new fund offer of the scheme is open for subscription and will close on July 3.
The performance of the scheme will be benchmarked against Nifty IT TRI. The scheme will be managed by Anil Ghelani and Diipesh Shah.
The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the underlying index (Nifty IT TRI), subject to tracking errors.
The scheme will invest around 95-100% in equity and equity-related securities of companies constituting Nifty IT Index, the underlying index and 0-5% in cash and cash equivalents.
“The Indian IT sector has been a consistent performer in the long term thanks to the global competitiveness and edge that they possess which also bodes well for the foreseeable future. Investors looking to benefit from this long-term growth story may consider investing in the Nifty IT index which is interestingly poised after underperforming in the recent past. We believe that at current levels, valuations are approaching average multiples, and many companies in this sector appear financially healthier and relatively cheaper when compared to global IT peers”, says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund. The ETF offers investors an opportunity to benefit from the good showing of Indian IT companies over the long term. The Indian IT sector has been growing consistently compared to other sectors over the years and has increased its contribution to India’s GDP. Indian IT companies have also grown significantly above global peers over the years, which has also resulted in its growing market share. Indian IT companies also see less variability when it comes to earnings, reducing earnings surprises and consequently being rewarded with higher earning multiples by investors.
