DSP Nifty IT Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Nifty IT Index Fund Direct Growth Plan is at ₹7.7555 as of 15 Sep 2026, with scheme AUM of ₹112 Cr. Its 1-year, 3-year and 5-year returns are -16.07%, 0% and 0%, and the fund sits in the High Risk category. Our view is that this is a concentrated IT index strategy that may suit investors who can tolerate sharp swings and want sector-specific exposure, but the short return history and weak recent pattern call for caution.
The fund’s structure is straightforward: a low expense ratio of 0.26%, direct growth plan, and a portfolio focused entirely on listed IT names. That concentration can amplify both upside and downside. For investors who want a narrow technology tilt rather than broad market exposure, the fund is easy to understand, but the performance record so far has been uneven.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹7.7555 as of 15 Sep 2026 |
| AUM | ₹112 Cr |
| Expense Ratio | 0.26% |
| Launch Date | 20 Jun 2025 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Anil Ghelani, Diipesh Shah, Neha Rathi |
The fund is managed by Anil Ghelani, Diipesh Shah and Neha Rathi.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -4.07% | -4.81% |
| 3M | 3.84% | -3.63% |
| 1Y | -16.07% | -8.27% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
The recent pattern has been uneven, with the fund recovering over three months after a weaker patch, but the 1-year figure remains clearly negative. That tells us the strategy has not yet built a stable track record through a full market cycle, which matters for an index fund where investors usually expect closer, steadier benchmark-style behaviour.
Against the benchmark, the fund has been more volatile over the periods shown. The 1-month return is only slightly better than the benchmark, but the 3-month return is far stronger than the benchmark’s decline, which suggests a sharper rebound in the fund. Even so, the 1-year number still trails the benchmark by a wide margin, so the improvement in the shorter window has not been enough to offset the longer stretch of weakness.
That mix of numbers makes the fund’s behaviour look less linear than a typical broad-market index product. The short-term recovery is encouraging, but it sits inside a year that was still materially negative. Because the scheme launched in June 2025, the absence of 3-year and 5-year figures is expected, and it also means investors have limited evidence on how the portfolio behaves across different cycles.
For our view, the main takeaway is that this is still a young fund with a choppy return path. Investors should read the stronger 3-month number as evidence of rebound potential, not as proof of consistency. The longer view is still incomplete, and the 1-year comparison with the benchmark remains the more important signpost at this stage.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD DSP Nifty IT Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding DSP Nifty IT Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| DSP Nifty IT Index Fund Direct Growth Plan | -16.07% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 29.31% | 30.01% | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 21.45% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.15% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.11% | 18.92% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The current fund’s 1-year return is well below the peer set shown here, while the shorter list of available longer-term peer figures is also materially stronger than the current fund’s incomplete track record. That contrast matters because the fund is a sector-specific IT product, yet its one-year outcome has not matched the stronger multi-period figures available for some peers.
The short-term and longer-term pictures do not tell the same story. The 3-month rebound is better than several peers’ one-year numbers, but the fund still lacks a positive longer-run record to support that recovery. For us, the peer data points to a fund that may be trying to stabilise after weakness, but it has not yet demonstrated the kind of sustained compounding some peers have shown where longer horizons are available.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Infosys Limited | IT | 29% |
| Tata Consultancy Services Limited | IT | 20.35% |
| HCL Technologies Limited | IT | 11.49% |
| Tech Mahindra Limited | IT | 10.57% |
| Coforge Limited | IT | 7.06% |
| Persistent Systems Limited | IT | 6.21% |
| Wipro Limited | IT | 5.11% |
| LTM Limited | IT | 4.31% |
| Mphasis Limited | IT | 3.28% |
| Oracle Financial Services Software Limited | IT | 3.06% |
The largest holding, Infosys Limited, carries a 29% weight, which is substantial on its own and likely to have the greatest influence on day-to-day movement. The second holding is also meaningful at 20.35%, so the top two positions together already dominate a large share of the portfolio’s visible weight.
The drop from the largest position to the tenth is steep, falling from 29% to 3.06%. That decline suggests the portfolio is not evenly spread across holdings, even though there are 10 disclosed names. The mid-pack positions still matter, but the first few names are clearly much more important than the smaller ones.
Because the disclosed holdings cover all 10 rows and together account for 100% of the portfolio, the fund is heavily concentrated in a single sector rather than spread across a longer tail of different industries. That may make the portfolio more sensitive to sector trends, which can help in strong IT phases but could also magnify weakness when the sector is out of favour.
Source data date: as of 15 Sep 2026
Who should invest
This fund is better suited to investors who can handle High Risk exposure and are comfortable with a narrow sector bet. The return pattern shows a weak 1-year outcome and no 3-year or 5-year history yet, so this is not a fund for investors who need a long, proven record of consistency.
It may fit a longer horizon, especially for someone already diversified elsewhere and looking for targeted IT exposure rather than broad equity participation. The main trade-off is that the portfolio is concentrated in IT names, so performance can move sharply with the sector. That concentration may appeal to investors who understand the sector cycle and accept the possibility of wide short-term swings.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of DSP Nifty IT Index Fund Direct Growth Plan?
The current NAV is ₹7.7555 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is -16.07%, while the 3-year and 5-year returns are both Data not available because the scheme is still young.
How has the fund performed against its benchmark?
It has lagged the benchmark over 1 year, with -16.07% versus -8.27%. Over 3 months, however, the fund’s 3.84% return is better than the benchmark’s -3.63%.
How does the fund compare with peers on available return data?
Its 1-year return is weaker than the peer funds listed here, while some peers also show stronger 3-year records where available. The short-term rebound is better than the current 1-year result, but the longer view is still incomplete.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
What is the risk profile and exit load?
The fund is in the High Risk category and is described as suited to investors comfortable with taking bold risks. It has no exit load.
Bottom line
This fund’s short history shows a clear gap between the recent rebound and the weaker 1-year outcome, so the story is still unsettled. Compared with the peers shown here, the current 1-year return is weaker, and the longer horizon is not yet available to offset that. The portfolio is tightly focused on IT names, which can create sharp sector-driven moves. For investors who want concentrated technology exposure and can tolerate High Risk volatility, the structure is easy to understand, but patience and a longer horizon matter.
Published on 16 September 2026 at 5:27 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.