DSP Mutual Fund launches DSP Nifty Healthcare ETF

Mumbai, January, 2024.

DSP Mutual Fund announced the launch of DSP Nifty Healthcare ETF, an open-ended scheme replicating/ tracking Nifty Healthcare Index that offers investors the opportunity to participate in India’s growing healthcare sector. The Nifty Healthcare Index covers diversified themes like pharmaceuticals, hospitals, pathology, healthcare research analytics & technology. It adjusts or rebalances every 6 months to represent the top 20 stocks (companies from healthcare sector) based on free float market cap from the Nifty 500 universe.

India’s healthcare market cap has grown at a decent rate of around 10% in the last 10 years. Today, the healthcare sector accounts for around 5.8% of the total market capitalization in India, which is one of the lowest compared to its developed and Emerging Market peer countries. Over time India’s focus on healthcare may help bridge this gap versus other markets. The Indian Government is expected to earmark 2.5% of Gross Domestic Product (GDP) for healthcare by FY25. More funds mean a healthier nation, which may also benefit the businesses in this sector.

Foreign Direct Investments in healthcare has seen an 8% CAGR increase from FY13 to FY23. Within the broader level healthcare sector, FDI flows have increased in drugs & pharmaceuticals, hospitals & diagnostic centers, and medical & surgical appliances in India.

The New Fund Offer for DSP Nifty Healthcare ETF will open for subscription on January 11th, 2024,and will close on January 25th, 2024.

Healthcare is a structural growth story, both for financial growth of companies in the sector, as well as for growing wellness for us individually on account of medical advancements. Many Indian healthcare companies have a good long-term potential to grow profitably over time and ambitious Government measures like Ayushman Bharat as part of a conducive policy are expected to spur growth in the sector. You can consider taking advantage of the potential growth of this sector by investing in a low cost, passively managed index fund. While the Nifty Healthcare Index is diversified across pharmaceuticals, hospitals, pathology and healthcare research and technology, being a sector fund, it could have relatively higher risk commensurate with the return potential,” says Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.