DSP BSE Sensex Next 30 ETF
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
The DSP BSE Sensex Next 30 ETF is currently trading near a key support level, with the 50-day EMA showing upward momentum. If it breaks above the recent resistance level, there is a potential for a price increase. However, if it falls below the support, a decline is likely.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
The DSP BSE Sensex Next 30 ETF is a strategic investment vehicle designed for investors looking to diversify their portfolio beyond the top 30 companies in India. This ETF focuses on the next 30 companies in the BSE Sensex, offering exposure to high-growth potential sectors. It is ideal for those seeking long-term capital appreciation and a chance to invest in emerging market leaders. With its transparent structure and low expense ratio, this ETF is a smart choice for both novice and seasoned investors.
- Diversifies exposure beyond top 30 Sensex companies
- Targets high-growth potential sectors
- Ideal for long-term capital appreciation
- Transparent and low expense ratio
- Suitable for both novice and experienced investors
Investment Thesis
DSP BSE Sensex Next 30 ETF offers a compelling investment opportunity with its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This ETF is well-positioned to capitalize on India's economic growth, making it a prudent choice for retail investors.
- Backed by a reputable promoter group, ensuring strong governance and trust.
- Exposure to high-growth digital services sector, driving future returns.
- Valuation metrics are favorable compared to industry peers, indicating potential upside.
- Diversified portfolio reduces risk while capturing market growth.
- Aligns with India's economic trajectory, appealing to long-term investors.
Opportunity vs Risk
- Diversification in top 30 companies
- Potential for long-term capital gains
- Low expense ratio compared to mutual funds
- High liquidity for easy trading
- Market volatility affecting returns
- Concentration in large-cap stocks
- Economic downturn impact on performance
- Tracking error may affect returns
Peer Perspective
DSP BSE Sensex Next 30 ETF trades at a slight premium compared to its peers like Nifty Next 50 and S&P BSE 100. A rerating could occur with sustained margin stability and improved growth metrics.
Future Outlook
The DSP BSE Sensex Next 30 ETF presents a promising opportunity for growth, provided that companies within the index maintain strong execution and effective cost control to navigate potential market volatility.
AI FAQs for Retail Users
- Q: What is DSP BSE Sensex Next 30 ETF?A: It is an exchange-traded fund that tracks the performance of the next 30 companies on the BSE Sensex.
- Q: How can I invest in this ETF?A: You can buy DSP BSE Sensex Next 30 ETF units through a registered stockbroker or trading platform.
- Q: What are the benefits of investing in this ETF?A: It offers diversification, lower expense ratios, and exposure to large-cap stocks outside the top 30.
- Q: Is this ETF suitable for long-term investment?A: Yes, it can be considered for long-term investment, depending on your financial goals and risk tolerance.
- Q: What are the risks associated with this ETF?A: Market volatility, sector concentration, and potential tracking errors are some risks to consider.
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10BusinessHighThe ETF focuses on companies in a future-ready sector with a diversified portfolio.
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10GrowthHighConsistent revenue and profit growth observed in underlying assets.
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10ProfitabilityHighROE and ROCE are stable, but OCF shows some volatility.
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8ValuationHighP/E and P/B ratios are in line with peers, indicating fair valuation.
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7BalanceHighDebt levels are manageable with adequate liquidity.
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6GovernanceGoodPromoter holding is strong, but some concerns over disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100