DSP Mutual Fund has launched the DSP Nifty Healthcare ETF, an open-ended scheme replicating the Nifty Healthcare Index. This scheme allows investors to participate in India’s growing healthcare sector, covering diversified themes like pharmaceuticals, hospitals, pathology, healthcare research analytics, and technology. The scheme adjusts every 6 months to represent the top 20 healthcare companies.
India’s healthcare market cap has grown by 10% in the last decade, currently accounting for 5.8% of the country’s total market capitalization. This is one of the lowest in developed and emerging market countries, but India’s focus on healthcare could help bridge this gap. 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.
The DSP Nifty Healthcare ETF’s new fund offer will commence subscription on January 11th, 2024, and conclude on January 25th, 2024. Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund, said, “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.”
