DSP Mutual Fund launches Nifty Private Bank Index Fund

DSP Mutual Fund has launched DSP Nifty Private Bank Index Fund, an open-ended scheme replicating/tracking the Nifty Private Bank Index aiming to provide investors with a focused approach to investing in the private banking sector.

The new fund offer or NFO for the DSP Nifty Private Bank Index Fund is open for subscription. The scheme will reopen for continuous sale and repurchase on March 10.

Investors can choose between lump-sum investments or systematic investment plans (SIPs) to align with their financial goals. Investors who are bullish on the banking sector can invest in this fund, whose concentrated approach gets them exposure to the four largest private banks which comprise approximately 80% of the index, according to a press release by the fund house.

The fund house believes that the concentration of larger banks within the Nifty Private Bank Index can be an advantage. Customers tend to trust and prefer larger banks more than other smaller peers. This facilitates higher credit growth, better access to capital and economies of scale – thereby helping these banks sustain and grow further.