DSP Mutual Fund has launched the DSP Nifty Healthcare ETF, an open-ended scheme replicating the Nifty Healthcare Index. The scheme offers investors the opportunity to participate in India’s growing healthcare sector, which accounts for around 5.8% of the total market capitalization in the country.
The healthcare sector has grown at a decent rate of around 10% in the last 10 years, and the Indian Government is expected to earmark 2.5% of GDP for healthcare by FY25. Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund, believes that investing in a low-cost, passively managed index fund could help capitalize on the potential growth of the healthcare sector.
Over time, India’s focus on healthcare may help bridge this gap compared to other markets. Foreign Direct Investments in healthcare have seen an 8% CAGR increase from FY13 to FY23, with FDI flows increasing in drugs & pharmaceuticals, hospitals & diagnostic centers, and medical & surgical appliances. The new fund offer for DSP Nifty Healthcare ETF will open for subscription on January 11th, 2024, and close on January 25th, 2024.
