DSP Investment Managers has announced the launch of the first passive product in the Indian mutual fund industry based on Nifty Midcap 150 Quality 50 Index – the DSP Nifty Midcap 150 Quality 50 ETF, along with the DSP Nifty 50 ETF. This new quality-focused mid cap ETF offers investors an option to invest in quality mid-cap companies with the potential of higher profitability, lower leverage &relatively stable earnings.
The second new product, DSP Nifty 50 ETF will invest in all the 50 companies from the Nifty 50 Index in line with the index. DSP Nifty Midcap 150 Quality 50 ETF follows a zero-bias, rule-based strategy by replicating the Nifty Midcap 150 Quality 50 Index, without fund manager ‘thinking’ or emotions involved. This index selects 50 companies from the parent Nifty Midcap 150 index based on ‘Quality Scores’ using metrics like return on equity, financial leverage (except for financial services companies) & earning per share (EPS) growth variability of each stock analysed during the previous 5 financial years.
