DSP BlackRock Mutual Fund has filed offer documents with SEBI to launch the DSP BlackRock Nifty 50 ETF.

The new fund offering is priced at ₹10 per unit. Investors in the scheme will not be burdened by entry and exit load.

Through the scheme, the fund house seeks to collect a minimum amount of ₹10 crore.

Minimum subscription ₹5,000

The fund, an open ended index-linked exchange-traded fund scheme, will be benchmarked against the Nifty 50 Index.

The minimum application amount is ₹5,000 and in multiples of ₹1 thereof.

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total return of the underlying index, subject to tracking errors.

While it will invest 95-100 per cent in equity and equity-related securities of companies constituting Nifty 50, the scheme will have an exposure of 0-5 per cent in cash and cash equivalents/money market instruments, including liquid and money market mutual fund schemes.

Currently, there are 11 Nifty ETFs. Goldman Sachs, which was recently acquired by Reliance Mutual Fund, was the first to launch ETFs based on Nifty.

AUM: ₹28,834 cr

The asset base of ETFs, including index-based schemes, stood at ₹28,834 crore as of December 31, 2016. The average AUM of mutual funds in December 2016 crossed ₹17 lakh crore. However, AUM on December 31, stood at ₹16.46 lakh crore.

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