Latest news with #AnilGhelani
Economic Times
06-07-2025
- Business
- Economic Times
Nifty50 + Nifty Next50: The no-brainer formula for long-term wealth creation
Synopsis In an exclusive chat, Anil Ghelani of DSP Mutual Fund advocates for simplicity in investing through Nifty 50 and Nifty Next 50 index funds. He explains how passive funds offer low-cost, transparent exposure and suit both SIP and lump-sum strategies. As thematic and sectoral ETFs grow, Ghelani sees a balanced 'core and satellite' approach gaining traction in India. In a market flooded with countless investment options and complex strategies, sometimes the most effective approach is also the simplest. According to Anil Ghelani, CFA and Head of Passive Investments at DSP Mutual Fund, investors looking for long-term wealth creation need only consider a straightforward combination: Nifty 50 and Nifty Next 50 funds. ADVERTISEMENT "These two indices offer a good mix of stability and growth," explains Ghelani, highlighting how the Nifty 50 provides exposure to established sector leaders that have weathered multiple business cycles, while the Nifty Next 50 captures the next generation of potential market leaders across diverse economic sectors. Edited excerpts from a chat: The most important financial goals are usually common — for most of us, they are aligned with the happiness of the family, a better life for children, or starting or expanding a business/profession. Yet, many of us often get preoccupied with the wrong priorities — like increasing the number of funds or chasing the next fancy investment product. Instead, a better approach could be to keep it simple and just aim to achieve our financial goals with a reasonable degree of certainty. So, with that approach in mind, yes — most certainly, passive investing can be considered a very effective solution to the potential confusion created by the growing number of investment products. Passive funds simplify the journey by providing low-cost, transparent, and relatively easy-to-understand exposure to markets, without the human bias of a fund manager. This reduces the need to constantly analyse sectors, stocks, or fund manager performance. So, passive investment funds like ETFs and index funds can offer a simpler and more disciplined approach that helps you stay invested without two indices offer a good mix of stability and growth. The companies in the Nifty 50 Index give exposure to sector-leading firms that have navigated multiple business cycles. On the other hand, companies in the Nifty Next 50 Index, while mainly large-cap stocks, often include the next generation of potential leaders from a wider range of sectors that are key economic drivers. So yes, if you are a long-term investor seeking simplicity and efficiency, I agree with the popular recommendation of combining Nifty 50 and Nifty Next 50. This can form the core of your portfolio, without the need for frequent changes or monitoring. Similarly, we could also consider the BSE Sensex Index and BSE Sensex Next 30 Index. ADVERTISEMENT Yes, awareness of passive funds has surely reached a tipping point in India. But I strongly believe that in decision-making, 'AND' is always more powerful than 'OR.' So why should one be the default? In my view, a better outcome is to have passive funds as part of a core allocation and other products like active funds or AIFs as part of a satellite allocation. You may get better risk-adjusted returns by having a passive core portfolio delivering market returns, and a satellite portfolio attempting to generate excess returns beyond the broader market. SIPs and passive funds are a natural fit. Systematic investing helps manage volatility and builds discipline, while passive funds lower costs and avoid selection bias. That said, lump-sum investments in passive funds are also very useful — especially during market dips or for long-term goals. Another important use case is when you believe a certain market segment or sector is undervalued. For example, if you feel defensive sectors like healthcare or IT are relatively undervalued today and have growth potential, then lump-sum allocations to an index fund or ETF focused on that sector may be a good decision. Yes. When markets fall sharply, ETF volumes on NSE and BSE often spike. This reflects long-term investors finding corrections to be attractive entry points. One of the key advantages of ETFs is that, rather than picking a few stocks which could go right or wrong, you can buy a broad-based ETF and participate in the market's recovery. So, if you're a well-informed investor comfortable trading on the exchange, ETFs can be effective trading tools during short-term dips. ADVERTISEMENT Every afternoon I go to my cafeteria and have the standard thali — simple chapati, sabzi, dal, and chawal. But once a quarter, after our rebalance trades are done, I like to enjoy fancy Italian food with the team — maybe with some dessert too. In my view, it's always good to have options — both in the cafeteria and in investing. As our markets evolve, we'll see more index funds and ETFs that offer exposure to narrow segments, sectors, or niche themes. Many investors will still stick to simple core products, but such thematic products must be available for those who want we'll see both. Certain investors or advisors will want products targeting specific sectors or themes for portfolio allocation. There will also be packaged products for DIY investors. While broad-market funds will continue to dominate AUM, smart beta and sectoral funds will persist — albeit with smaller AUM. To offer context, in the U.S., as of December 2024, smart beta funds comprised about 13% of total equity passive fund AUM. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? 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Time of India
06-07-2025
- Business
- Time of India
Nifty50 + Nifty Next50: The no-brainer formula for long-term wealth creation
Tired of too many ads? Remove Ads As the Indian market matures, we are seeing a number of new products, categories, and investment options. But has this created a 'problem of plenty'? Can passive investing help solve this? Tired of too many ads? Remove Ads One common no-brainer strategy is investing in Nifty 50 and Nifty Next 50 ETFs or funds. Is this effective for those looking for simplicity? Are we finally at a tipping point in India where passive investing becomes the default, not the alternative? While SIP is often called the wisest way to invest, is it especially relevant for passive funds? Does lump-sum investing make sense in passives? There have been reports of increased ETF buying during sharp market falls. Can ETFs serve as trading products during such times? We spoke about how passives can simplify investing, but the market is now flooded with thematic indices. How do you see this trend evolving? What's your outlook on new product launches — will we see more thematic or factor-based ETFs, or will broad indices still dominate? In a market flooded with countless investment options and complex strategies, sometimes the most effective approach is also the simplest. According to Anil Ghelani , CFA and Head of Passive Investments at DSP Mutual Fund , investors looking for long-term wealth creation need only consider a straightforward combination: Nifty 50 and Nifty Next 50 funds."These two indices offer a good mix of stability and growth," explains Ghelani, highlighting how the Nifty 50 provides exposure to established sector leaders that have weathered multiple business cycles, while the Nifty Next 50 captures the next generation of potential market leaders across diverse economic most important financial goals are usually common — for most of us, they are aligned with the happiness of the family, a better life for children, or starting or expanding a business/profession. Yet, many of us often get preoccupied with the wrong priorities — like increasing the number of funds or chasing the next fancy investment a better approach could be to keep it simple and just aim to achieve our financial goals with a reasonable degree of certainty. So, with that approach in mind, yes — most certainly, passive investing can be considered a very effective solution to the potential confusion created by the growing number of investment products. Passive funds simplify the journey by providing low-cost, transparent, and relatively easy-to-understand exposure to markets, without the human bias of a fund manager. This reduces the need to constantly analyse sectors, stocks, or fund manager performance. So, passive investment funds like ETFs and index funds can offer a simpler and more disciplined approach that helps you stay invested without two indices offer a good mix of stability and growth. The companies in the Nifty 50 Index give exposure to sector-leading firms that have navigated multiple business cycles. On the other hand, companies in the Nifty Next 50 Index, while mainly large-cap stocks, often include the next generation of potential leaders from a wider range of sectors that are key economic drivers. So yes, if you are a long-term investor seeking simplicity and efficiency, I agree with the popular recommendation of combining Nifty 50 and Nifty Next 50. This can form the core of your portfolio, without the need for frequent changes or monitoring. Similarly, we could also consider the BSE Sensex Index and BSE Sensex Next 30 awareness of passive funds has surely reached a tipping point in India. But I strongly believe that in decision-making, 'AND' is always more powerful than 'OR.' So why should one be the default? In my view, a better outcome is to have passive funds as part of a core allocation and other products like active funds or AIFs as part of a satellite allocation. You may get better risk-adjusted returns by having a passive core portfolio delivering market returns, and a satellite portfolio attempting to generate excess returns beyond the broader and passive funds are a natural fit. Systematic investing helps manage volatility and builds discipline, while passive funds lower costs and avoid selection bias. That said, lump-sum investments in passive funds are also very useful — especially during market dips or for long-term goals. Another important use case is when you believe a certain market segment or sector is undervalued. For example, if you feel defensive sectors like healthcare or IT are relatively undervalued today and have growth potential, then lump-sum allocations to an index fund or ETF focused on that sector may be a good When markets fall sharply, ETF volumes on NSE and BSE often spike. This reflects long-term investors finding corrections to be attractive entry points. One of the key advantages of ETFs is that, rather than picking a few stocks which could go right or wrong, you can buy a broad-based ETF and participate in the market's recovery. So, if you're a well-informed investor comfortable trading on the exchange, ETFs can be effective trading tools during short-term afternoon I go to my cafeteria and have the standard thali — simple chapati, sabzi, dal, and chawal. But once a quarter, after our rebalance trades are done, I like to enjoy fancy Italian food with the team — maybe with some dessert too. In my view, it's always good to have options — both in the cafeteria and in investing. As our markets evolve, we'll see more index funds and ETFs that offer exposure to narrow segments, sectors, or niche themes. Many investors will still stick to simple core products, but such thematic products must be available for those who want we'll see both. Certain investors or advisors will want products targeting specific sectors or themes for portfolio allocation. There will also be packaged products for DIY investors. While broad-market funds will continue to dominate AUM, smart beta and sectoral funds will persist — albeit with smaller AUM. To offer context, in the U.S., as of December 2024, smart beta funds comprised about 13% of total equity passive fund AUM.
Economic Times
03-06-2025
- Business
- Economic Times
NFO Alert: DSP Mutual Fund launches index funds on IT and Healthcare sectors
The IT and healthcare sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. DSP Mutual Fund has launched two new index funds — the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund. These offerings provide investors a strategic avenue to gain exposure to the IT and healthcare sectors, both known for their relative resilience in volatile equity markets. The new fund offer, or NFO, for both funds, is open for subscription and will close on June 16. The DSP Nifty IT Index Fund aims to replicate/track the Nifty IT Index and would be investing in the top 10 IT companies by free float market capitalisation. The Indian IT sector has demonstrated smooth earnings growth with relatively low earnings variability, which has helped to reduce earnings surprises. Over the last 12 years, the Nifty IT index has delivered consistent earnings growth, outperforming many other sectors. While the IT sector has underperformed the broader market in recent years, historical cycles suggest potential for a turnaround, making this an opportune moment for investors to consider sector-focused exposure. Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? The DSP Nifty Healthcare Index Fund aims to replicate or track the Nifty Healthcare Index, investing in the top 20 healthcare companies based on free-float market capitalisation. Notably, India's healthcare sector accounts for a relatively small share of the country's total market capitalisation compared to developed and emerging markets. This indicates significant growth potential, supported by expanding healthcare infrastructure, rising insurance penetration, and ongoing medical innovation. "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. In uncertain market environments, defensive sectors like IT and healthcare have seen lower drawdowns, with the potential to deliver attractive returns,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund.'By strategically including low-beta sectors such as Information Technology and Healthcare, investors can construct a more resilient and efficient portfolio, which may help them optimise returns and effectively manage market risk. 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. Our disciplined passive management approach aims to closely track these sectors, helping investors capture structural growth with lower volatility,' said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund 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 sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. To put this in context of numbers, ~ 96% of total revenues for the companies in the Nifty IT Index come from various global markets other than India. Notably, 52% of the total revenues for companies in the Nifty Healthcare Index are derived from global markets, compared to just 25% for companies in the Nifty 50 Index.
Time of India
03-06-2025
- Business
- Time of India
NFO Alert: DSP Mutual Fund launches index funds on IT and Healthcare sectors
DSP Mutual Fund has launched two new index funds — the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund . These offerings provide investors a strategic avenue to gain exposure to the IT and healthcare sectors, both known for their relative resilience in volatile equity markets. The new fund offer, or NFO , for both funds, is open for subscription and will close on June 16. The DSP Nifty IT Index Fund aims to replicate/track the Nifty IT Index and would be investing in the top 10 IT companies by free float market capitalisation. The Indian IT sector has demonstrated smooth earnings growth with relatively low earnings variability, which has helped to reduce earnings surprises. Over the last 12 years, the Nifty IT index has delivered consistent earnings growth, outperforming many other sectors. While the IT sector has underperformed the broader market in recent years, historical cycles suggest potential for a turnaround, making this an opportune moment for investors to consider sector-focused exposure. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? The DSP Nifty Healthcare Index Fund aims to replicate or track the Nifty Healthcare Index, investing in the top 20 healthcare companies based on free-float market capitalisation. Notably, India's healthcare sector accounts for a relatively small share of the country's total market capitalisation compared to developed and emerging markets. This indicates significant growth potential, supported by expanding healthcare infrastructure, rising insurance penetration, and ongoing medical innovation. Live Events "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. In uncertain market environments, defensive sectors like IT and healthcare have seen lower drawdowns, with the potential to deliver attractive returns,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund. 'By strategically including low-beta sectors such as Information Technology and Healthcare, investors can construct a more resilient and efficient portfolio, which may help them optimise returns and effectively manage market risk. 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. Our disciplined passive management approach aims to closely track these sectors, helping investors capture structural growth with lower volatility,' said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund. Also Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund 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. These sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. To put this in context of numbers, ~ 96% of total revenues for the companies in the Nifty IT Index come from various global markets other than India. Notably, 52% of the total revenues for companies in the Nifty Healthcare Index are derived from global markets, compared to just 25% for companies in the Nifty 50 Index.
Time of India
06-05-2025
- Business
- Time of India
A passive Nifty investment strategy to beat market returns
Mumbai: A low-cost investment strategy that aims to benefit from both narrow and broad-based equity rallies could generate market-beating returns. The plan, better suited for seasoned investors, involves switching between two Nifty index funds -- Nifty Top 10 Equal Weight, and Nifty 50 Equal Weight -- depending on market conditions. #Pahalgam Terrorist Attack Pakistan's economy has much more to lose than India's due to the ongoing tensions, warns Moody's Ratings The day Pakistan got the power to poke India FM Sitharaman meets ADB chief and Italian FM, discusses economic issues; no mention of Pakistan If the gains in Nifty are driven by a select set of stocks, investors could consider the Top 10 Equal Weight index, while investing in the Nifty 50 Equal Weight index is suitable in times of a broad-based rally, says Anil Ghelani, head of passive investments and products, DSP Mutual Fund . A study by DSP Mutual fund showed investors can benefit from phases of 'polarisation' and 'depolarisation' by adopting a simple strategy of buying these index funds. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » When the rally is narrow, with the top 10 stocks of the Nifty 50 starting to outperform the remaining 40 stocks of the Nifty 50, it is considered a polarised market. On the other hand, when the top 10 stocks underperform the remaining 40 stocks in the Nifty 50 Index, the phase is termed depolarisation. This strategy could make higher returns than merely investing in a single index. DSP's study showed investors, who followed this strategy could have generated returns of 14.6% every year over the February 2007 - April 2025 period. In comparison, investments in the Nifty 50 Equal Weight Total Returns Index (TRI) alone would have returned 12.9% every year, while it would be 13.3% for the Nifty Top 10 Equal Weight TRI, and 12.2% for the Nifty 50 TRI. Live Events "If you are able to tactically time the entry into these funds, there is scope for outperformance in such passive index strategies," says Prateek Sinha, director, Deep MFD, a wealth management firm. DSP said the Nifty has entered a polarisation phase beginning November 2024, where the top 10 stocks are outperforming the broader markets, and investors would be better off investing in the Top 10 Equal Weight Index. During the 15 months between September 2023 and November 2024, the market had been in a depolarisation phase. For deciding their entry points into each of these indices, investors must track the ratio of the Top 10 Equal Weight Index to the 50 Equal Weight Index. Whenever the ratio is above its 12-month moving average, it means that the Nifty Top 10 Equal Weight Index has started to outperform. When this ratio moves below the 12-month moving average, investors could consider the Nifty 50 Equal Weight Index. Such investment strategies could work well for investors with sophisticated systems. "Family offices or rich investors can use such strategies, where they monitor the changing trends and are quick to act," says S Shankar, certified financial planner at Credo Capital. Sinha, of Deep MFD, said retail investors, especially those who do not track the market regularly, might find it difficult to capture such changing trends.
