DSP Mutual Fund launches India’s First Flexicap Index Fund…!
SIP recommended^ Quality-Driven Fund, Built for
Resilience
NFO
Details
Open Date: 08
Aug`25
Close Date: 22
Aug`25
NAV; ₹10
DSP Mutual Fund launched the DSP Nifty500 Flexicap
Quality 30 Index Fund, a first-of-its-kind low-cost flexicap strategy
that combines quality-only stocks and dynamic market cap allocation based on
momentum triggers. This fund will mirror India’s first flexicap index,
designed to help investors navigate shifting equity markets confidently.
The new fund addresses the most common
challenges faced by equity investors: identifying high quality stocks,
automating optimal allocation to large, mid and small caps and doing all this
at a low cost.
Nifty500 Flexicap Quality 30, which the
fund replicates, uses the quality factor to identify 30 fundamentally strong
companies- 10 from large, mid and small caps, assigning equal weight to stocks
within each segment. Quality is guided by parameters like high ROEs, low debt
and strong earnings growth.
Further, the index uses flexicap momentum
as the driver to allocate between the 3 segments based on relative performance
potential. It does this by utilizing a clear rule-based signal- the ratio of
small & midcaps (SMID) to large caps compared to its 200 Day Moving
Average. This signal will be used for every quarterly rebalance, resetting SMID
allocation to either 33% or 67% (2/3rd). Similarly, large cap allocation will
also be reset to either 33% or 67% at the end of every quarter.
Nifty500 Flexicap Quality 30 Index has
delivered a CAGR of 18.1% since October 2009, significantly outperforming the Nifty 500 TRI, which returned
13.0% during the same period. The index has also demonstrated resilience
during volatile periods, thanks to its focus on quality. Over rolling 5-year
SIP periods, the index has delivered a median return of 20.3%, compared to the
15.8% returns of Nifty 500 TRI during the same period.
This simple fund design is
based on first principles, and investors benefit from investing in it as it
removes the need to constantly monitor market segments or switch between
schemes- something that most end up doing, incurring costs along the way. Its
passive structure also means rebalancing occurs without tax outflow or exit
loads, not typically available in DIY or actively managed flexi/multi-cap
strategies.
Two conditions are important for investors
to achieve compounding - investing in high quality businesses at reasonable
valuations. The quality factor is going through sharp price and time
correction. We have always believed in launching funds when the strategy is in
low cycle. Hence, we are introducing the first flexicap index fund which
invests in 30 high quality companies across all market caps.
“DSP Nifty500 Flexicap Quality 30 Index
Fund brings together the best of both worlds, dynamic flexicap allocation and
high-quality stock selection, using a transparent, rules-based approach. It’s
designed to reduce noise, eliminate complexity, and help investors participate
meaningfully across market cycles.
Most investors struggle with market timing
and allocation decisions. This strategy addresses those challenges through a
smart combination of flexi-momentum-based rebalancing and disciplined quality
filters, delivering both agility and resilience.
With this launch, DSP reinforces its
commitment to investor-first innovation by offering strategies that are clean,
rules-based, cost-efficient, and designed to work across market environments.
DSP Nifty500
Flexicap Quality 30 Index Fund is an open ended scheme replicating / tracking
Nifty500 Flexicap Quality 30 Index
Investments via SIP..!
We recommend investments via SIP. The
scheme allows other modes including lumpsum / STP.
Ideal
holding period:10 Years+
Minimum
Investment
- Lumpsum ₹ 100
- SIP ₹ 100 (12
instalments)
- Additional
purchase
₹ 100
Tax
Implications (Applies to redemptions or transfers made
on or after April 1, 2025)
Taxation category - Equity
Oriented Fund Sub Category - Equity
Schemes
|
Holding
period |
Capital
gain type |
Applicable
tax rate |
|
More than 12 months |
Long term |
12.5 %* |
|
12 months or less |
Short term |
20 % |
* Per Financial year longterm capital gain Rs. 1.25 lakh is tax free.
For more details and investment..!
Mr. K P Venkatarama
Krishnan,
Founder, Viruksham
Finmart Private Ltd
Chennai
E - Mail: kpvenkat02@gmail.com
Cell Number: 98410
34997
Read articles written by Mr. K P Venkatarama Krishnan in
Nanayam Vikatan, a leading personal finance magazine.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. The past performance of the mutual funds is not
necessarily indicative of future performance of the schemes.
