India’s pension fund segment is significantly under-penetrated, representing only 3 percent of the country’s GDP. By 2050, India’s elderly population is expected to increase by 2.5 times, which could be a catalyst for the popularity of pension funds. While most pension funds in India are passive, DSP has an active fund management, with the active share being 64.01 percent. The fund, launched last year, invests in equity shares of companies with low debt, significantly profitable businesses, and good corporate governance and competent management. DSP Pension Fund Managers Equity Tier I scheme has a downside capture ratio of 59 percent, which means if the benchmark goes down by 10 percent, its scheme will be down by 5.9 percent. As per regulation, equity pension funds are benchmarked against the S&P BSE 200 index. The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Money Control.com advises users to check with certified experts before taking any investment decisions.
