1. An open ended scheme replicating/ tracking Nifty IT Index
DSP NIFTY IT ETF
An opportunity to participate in Indian IT story!
NFO Period
21st June –
03rd July
2023

2. Why consider Indian Information Technology (IT) sector?

3. IT’s booming, globally
Source: CMIE, DSP, Data as on May 31, 2023.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
FY
1992
FY
1994
FY
1996
FY
1998
FY
2000
FY
2002
FY
2004
FY
2006
FY
2008
FY
2010
FY
2012
FY
2014
FY
2016
FY
2018
FY
2020
FY
2022
IT sector revenue as % of GDP
Indian IT sector has been consistently
growing compared to other sectors and
contributing to the country’s GDP.
Indian IT companies have grown
significantly above global peers over
the years
(5)
-
5
10
15
20
25
30
35
40
2001 2004 2007 2010 2013 2016 2019 2022
World IT spending growth (%)
Indian IT exports growth (%)
(RHS)
Which resulted in growing market
share of Indian IT companies
0
2
4
6
8
10
12
14
India IT's Market Share (%)
Source: NASSCOM. Kotak Institutional Equities
Source: NASSCOM. Kotak Institutional Equities
The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or
may not have any future position in these sector(s)/stock(s)/issuer(s).

4. IT’s Earnings Variability is low
Source: Internal, NSE, Bloomberg, DSP, Data as on 31 May 2023. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same
and the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).
0
50
100
150
200
250
300
350
400
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Earning Growth over last 10 year
Nifty 50 Nifty IT Nifty Auto
Nifty FMCG Nifty Bank Nifty Pharma
Nifty Energy
Smooth
earning
growth
12%
6%
29%
18%
33%
29%
39%
Nifty 50 Nifty IT Nifty
Auto
Nifty
FMCG
Nifty
Bank
Nifty
Pharma
Nifty
Energy
Earnings variability
Less earnings variability can help in reducing earning surprises, and is rewarded with higher multiples by investors

5. IT gives you global exposure
Source: Morningstar, DSP, Data as on May 31, 2023
5
52
11
25
8
Nifty IT
India US Asia ex-India Europe Other
74
11
6
7 3
Nifty 50
India US Asia ex-India Europe Other
Nifty IT index can help in diversifying existing equity portfolio away from domestic risks
Revenue Share % by
Geographical split

6. IT’s attractive and financially healthier than global peers
Attractive Valuations
Better Financial strength
19.2
25.4
Global IT Nifty IT
ROE%
7.7
16.2
NASDAQ 100 Nifty IT
ROA%
31.4
25.2
NASDAQ 100 Nifty IT
P/E Ratio
7.1
6.4
NASDAQ 100 Nifty IT
P/B Ratio
Source: Bloomberg, DSP, Data as on 31 May 2023. NASDAQ 100 considered for Global IT. ROE – Return on Equity, ROA – Return on Assets, P/E – Price to Earnings,
P/B – Price to Book

7. IT’s not expensive, relatively
Peak valuations are now behind us, IT sector approaching average multiples
Source: Bloomberg, DSP, Data as on 31 May 2023
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Nifty IT/Nifty 50 PE
PE ratio
1
1.5
2
2.5
3
Nifty IT/Nifty 50 PB
PB ratio
0
0.5
1
1.5
2
2.5
3
3.5
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
Nifty 50 Nifty IT
Dividend Yield
Above average
Moderate
Attractive

8. IT has underperformed
13%
0%
24%
25%
6%
-6%
34%
6%
13%
1%
13%
17%
Nifty 50
Nifty IT
Nifty Auto
Nifty Bank
Nifty consumer durable
Nifty Energy
Nifty FMCG
Nifty Healthcare
Nifty Infrastructure
Nifty Pharma
Nifty Metal
Nifty Realty
Last 1 year returns
Source: NSE, Data as on 31 May 2023. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an
index. . The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the Fund may or may not have any future
position in these sector(s)/stock(s)/issuer(s).

9. -100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
1 year Historical Alpha (Nifty IT-Nifty 50) 1 year forward alpha
Underperformance is usually followed by outperformance
Nifty IT has been
underperforming Nifty
50 since last 1.5 years;
can there be a
turnaround in
performance as it has
happened in past?
Source: NSE, Data as on 31 May 2023. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. These
figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index.

10. IT’s under owned: Weight of IT sector in Nifty 50 has declined
Source: NSE, DSP, Data as on 31 May 2023. GICS sector considered
10
11
12
13
14
15
16
17
18
19
20
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Weight of IT Sector in Nifty 50
Average : 14.6%
Current : 12.9%

11. About Nifty IT Index

12. Portfolio – Nifty IT Index
Index is concentrated & predominantly large-cap oriented
Source: NSE. Data as on 31 May 2023. The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any recommendation of the same and the
Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).

13. Liquid & Large IT Stocks 10 IT stocks
No single stock
exposure > 33%
Max exposure to top 3
stocks <= 62%
Semi-Annual
rebalancing
Index Features
Source: NSE. The above restrictions are based on Index methodology and the same may change in future by NSE.

14. Source – MFIE. Data as on 31 May 2023. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an
index.
Long term Performance
Nifty IT Index has grown by 29x vs 22x by
Nifty 50 in last 24 years
0
500
1000
1500
2000
2500
3000
3500
4000
Jun-99
May-00
Mar-01
Jan-02
Nov-02
Oct-03
Aug-04
Jun-05
Apr-06
Mar-07
Jan-08
Nov-08
Sep-09
Aug-10
Jun-11
Apr-12
Feb-13
Jan-14
Nov-14
Sep-15
Jul-16
Jun-17
Apr-18
Feb-19
Dec-19
Nov-20
Sep-21
Jul-22
May-23
Value of Rs.100 invested on 01 Jan, 2000
NIFTY 50 NIFTY IT
15%
13.7%

15. 13.2%
14.7%
NIFTY 50 NIFTY IT
5 Year
12.7%
15.9%
NIFTY 50 NIFTY IT
1 Year
13.0%
15.5%
NIFTY 50 NIFTY IT
3 Year
14.2%
15.0%
NIFTY 50 NIFTY IT
10 Year
Median Rolling Returns
Nifty IT has
outperformed Nifty 50
on rolling return basis
across duration
Source – MFIE. Data as on 31 May 2023. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an
index.

16. Numbers in ( ) indicates number of years of experience. The investment approach / framework/ strategy mentioned herein are
currently followed and the same may change in future depending on market conditions and other factors.
Portfolio Management / Dealing / Analysis
Aanchal Almal, CFA
(8 yrs)
Manager
Diipesh Shah
(19 yrs)
Vice President
Anil Ghelani, CFA
(20 yrs)
Head of Passive
Investments & Products
Passive Investments Process
Review Opening Portfolios and
forecast Cash Flows
Review market liquidity to
manage impact costs
Pre - Trade Evaluation Investment Decision Post - Trade Analysis
Track mandatory and elective
Corporate Actions
Strategy for stock level timing
and pace of execution
Identify price movements and
evaluate stock lending
opportunities
Evaluate trade execution
Analyse Tracking Error
Ensure real time portfolio
weights align with underlying
index
Track Scheduled and Adhoc
rebalances
Monitor
real time market movement
Investment team & Process
In line with global best
practices - dedicated
passive investment desk
to increase focus

17. Concentration Risk
• This index provides exposure only to the IT sector, leading to sector-level concentration risk
• This index has only 10 stocks, thereby leading to stock level concentration risk
High Volatility & Drawdown
• This fund can have higher volatility & drawdowns as compared to diversified equity funds
Underperformance
• This fund can underperform diversified equity funds in the short-term
Risks

18. Risk - Nifty IT index can witness significant underperformance
Year Nifty IT Returns Nifty 50 Returns Alpha
2000 -29.6% -13.4% -16.2%
2001 -37.5% -15.0% -22.5%
2002 4.8% 5.3% -0.6%
2003 24.3% 76.6% -52.3%
2004 26.1% 13.0% 13.1%
2005 33.5% 38.6% -5.1%
2006 39.9% 41.9% -2.0%
2007 -11.1% 56.8% -67.9%
2008 -54.2% -51.3% -2.9%
2009 167.6% 77.6% 90.0%
2010 30.8% 19.2% 11.6%
2011 -17.0% -23.8% 6.8%
2012 -0.2% 29.4% -29.6%
2013 60.2% 8.1% 52.1%
2014 20.1% 32.9% -12.8%
2015 1.5% -3.0% 4.6%
2016 -5.3% 4.4% -9.7%
2017 14.5% 30.3% -15.7%
2018 26.1% 4.6% 21.5%
2019 11.0% 13.5% -2.5%
2020 58.1% 16.1% 41.9%
2021 62.3% 25.6% 36.8%
2022 -24.5% 5.7% -30.2%
Source – MFIE. Data as on 31 May 2023. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
These figures pertain to performance of the index/Model and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an
index.

19. DSP Nifty IT ETF
(An open ended scheme
replicating/ tracking Nifty IT
Index)
This product is suitable for investors who are seeking*
• Long-termcapital growth
• Investment in equity and equity related securities
covered by Nifty IT Index, subject to tracking error.
*Investors should consult their financial advisers if in
doubt about whether the Scheme is suitable for them.
Disclaimers: This presentation / note is for information purposes only. It should not be construed as investment advice to any party. In this material DSP Asset Managers Pvt. Ltd. (the AMC) has used information that is publicly available,
including information developed in-house. Information gathered and used in this material is believed to be from reliable sources. While utmost care has been exercised while preparing this document, the AMC nor any person connected does
not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient(s) before acting on any information herein should make his/their own
investigation and seek appropriate professional advice. The statements contained herein may include statements of future expectations and other forward looking statements that are based on prevailing market conditions / various other
factors and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Past performance may or may not be sustained in
the future and should not be used as a basis for comparison with other investments. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the schemes of DSP
mutual fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). Large-caps are defined as top 100 stocks on market capitalization, mid-caps as 101-250 , small-caps as 251 and above. Data provided is as on May
31, 2023 (unless otherwise specified) The figures pertain to performance of the index and do not in any manner indicate the returns/performance of the Scheme. It is not possible to invest directly in an index. All opinions, figures,
charts/graphs and data included in this presentation are as on date and are subject to change without notice. For complete details on investment objective, investment strategy, asset allocation, scheme specific risk factors and more details,
please read the Scheme Information Document, Statement of Additional Information and Key Information Memorandum of respective scheme available on ISC of AMC and also available on www.dspim.com. There is no assurance of any
returns/capital protection/capital guarantee to the investors in above mentioned Scheme. The presentation indicates the strategy/investment approach currently followed by the above mentioned Scheme and the same may change in future
depending on market conditions and other factors.
NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness
or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the ‘Disclaimer Clause of NSE’.
BSE Disclaimer: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or
completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Limited.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
SCHEME RISKOMETER BENCHMARK RISKOMETER - Nifty IT TRI
Disclaimer & Product Labelling

20. #INVESTFORGOOD