DSP Mutual Fund unveils index funds in IT and healthcare to tap defensive sector strength

DSP Mutual Fund has launched two new index funds—the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund—offering investors a strategic opportunity to participate in sectors known for resilience during market downturns. The New Fund Offer (NFO) for both schemes is open from June 2 to June 16, 2025.

Defensive sectors like IT and Healthcare have historically shown lower beta and steadier performance during economic shocks. During the 2008 financial crisis and the Covid-19 pandemic, both Nifty Healthcare and Nifty IT indices registered smaller drawdowns and faster recoveries than the broader Nifty 500.

With global markets contributing ~96% of revenues for Nifty IT and ~52% for Nifty Healthcare companies, these sectors are less dependent on India’s domestic cycles, unlike the Nifty 50 Index, which garners only ~25% globally. In Guwahati, financial advisors are seeing increased investor interest in sector-specific funds, particularly among young professionals seeking diversification and downside protection. Local advisors believe that passive exposure to IT and Healthcare will offer stable growth, especially amid global economic volatility.