DSP BSE Sensex Next 30 Index Fund
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Business Overview
The DSP BSE Sensex Next 30 Index Fund is an index fund designed to track the performance of the next 30 largest companies in the BSE Sensex after the top 30. Ideal for investors seeking exposure to mid-cap growth opportunities, this fund offers diversification and potential for capital appreciation. It matters as it allows investors to participate in the growth of emerging businesses in India, balancing their portfolios with a focus on long-term wealth creation.
- Tracks next 30 largest companies in BSE Sensex
- Ideal for mid-cap growth exposure
- Offers diversification benefits
- Focuses on long-term capital appreciation
- Managed by experienced professionals
Investment Thesis
The DSP BSE Sensex Next 30 Index Fund offers a compelling investment opportunity backed by a strong promoter group known for credibility. With the growth of digital services in India, this fund is well-positioned to capitalize on emerging trends. Its attractive valuation compared to peers further enhances its appeal for retail investors seeking long-term gains.
- Strong promoter group with a proven track record.
- Significant growth potential in India's digital services sector.
- Attractive valuation compared to competing funds.
- Diversified exposure to the next 30 large-cap companies.
- Ideal for investors seeking long-term capital appreciation.
Opportunity vs Risk
- Diversification in top-performing stocks
- Potential for long-term capital growth
- Lower expense ratio than active funds
- Access to large-cap companies
- Tax benefits on long-term investments
- Market volatility affecting returns
- Limited to index performance
- Lack of active management
- No guarantee of capital protection
- Tracking error may occur
Peer Perspective
DSP BSE Sensex Next 30 Index Fund trades at a slight premium compared to peers like ICICI Prudential Nifty Next 50 Fund and SBI Nifty Next 50 Fund; a sustained growth acceleration could trigger a rerating.
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10BusinessHighThe fund is invested in a diversified portfolio of companies, but the sector lacks a clear moat.
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10GrowthHighThe underlying companies show moderate revenue and profit growth consistency.
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10ProfitabilityHighROE and ROCE are average, with OCF slightly lagging behind net profit.
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8ValuationHighValuation metrics are in line with peers but not particularly attractive.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is decent, but there are concerns about disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain significant.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.