DSP Mutual Fund has announced the launch of two new index funds, DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund. These funds aim to provide investors with a strategic way to participate in sectors known for their resilience compared to broader equity markets. Defensive sectors such as Information Technology (IT) and Healthcare have historically exhibited low beta relative to the broader equity market, meaning they are less affected by market downturns, economic crises, or geopolitical events. For instance, during the Global Financial Crisis (Jan – Oct 2008) and the Covid-19 pandemic (Jan – March 2020), Nifty Healthcare and Nifty IT indices outperformed the broader Nifty 500 Index by experiencing lower drawdowns and quicker recoveries.
The DSP Nifty Healthcare Index Fund seeks to replicate/track the Nifty Healthcare Index and would be investing in the top 20 Healthcare companies by free-float market capitalization. The New Fund Offer (NFO) period for both funds will be open from June 2 to June 16, 2025. “The launch of the DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund offers investors a balanced approach to participate in sectors that combine growth with resilience,” said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund.
“Defensive sectors are currently underrepresented in broader indices, and history shows that when underweight, sectors like IT and Healthcare tend to outperform the market over the following year,” said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund.
