Minimum Investment ₹100: DSP Nifty 500 Index Fund and DSP Nifty Next
50 ETF..!
DSP Mutual Fund announced the launch of two new passive investment offerings, DSP Nifty 500 Index Fund and DSP Nifty Next 50 ETF, aimed at providing investors diversified, transparent, and cost-efficient access to India’s equity markets through well-established benchmark indices.
The launches reinforce DSP Mutual
Fund’s continued focus on expanding its passive investment platform, offering
investors simple building blocks that can complement active strategies across
market cycles.
The DSP
Nifty 500 Index Fund is an open-ended index fund that seeks to replicate the
Nifty 500 Index, which represents the top 500 listed companies in India across
large-cap, mid-cap and small-cap segments. Together, these companies account
for over 90% of the total listed market capitalization*, making the index one
of the most comprehensive representations of India’s equity universe.
Unlike
narrower large-cap indices, the Nifty 500 offers investors a structurally
diversified exposure where allocations to large, mid and small caps
automatically realign as markets evolve. This removes the need for frequent
portfolio churn or tactical allocation decisions, allowing investors to stay
invested through different phases of the economic and market cycle.
The index
also provides low overlap with actively managed flexi-cap strategies, offering
investors an alternative source of equity exposure that is free from fund
manager-style biases and stock-selection risk. Over long periods, such
broad-based exposure can help investors capture market returns with greater
transparency, particularly in environments where consistent alpha generation
becomes harder.
The DSP
Nifty Next 50 ETF is an open-ended exchange traded fund designed to track the
Nifty Next 50 Index comprising companies ranked 51 to 100 by market
capitalisation within the Nifty 100 universe. Historically, this segment has
served as a bridge between established large caps and emerging leaders,
offering differentiated sector exposure and long-term growth potential, albeit
with higher volatility.
Both
schemes will aim to closely track their respective indices, subject to tracking
error, supported by DSP’s dedicated passive investment desk that follows global
best practices in index replication, rebalancing and execution.
The DSP
Nifty 500 Index Fund (An open ended scheme replicating/ tracking Nifty 500
Index) may be suitable for investors seeking long-term capital growth through
diversified exposure across market capitalisations, while the DSP Nifty Next 50
ETF (An open ended scheme replicating / tracking Nifty Next 50 Index) may be
considered by investors with a longer investment horizon who are comfortable
with interim volatility and are looking to complement core equity allocations.
The New
Fund Offer (NFO) for both schemes opens on December 19, 2025 and closes on
December 30, 2025.
The minimum investment amount required to invest in DSP Nifty 500 Index
Fund is ₹100.
Passive
investing works best when indices are chosen for the role they play in a
portfolio, not just for recent performance. The Nifty 500 provides a broad,
evolving exposure to India’s equity markets, while the Nifty Next 50 offers
access to large companies that are still in a phase of transition and growth.
These funds are designed to act as long-term building blocks that investors can
combine with active strategies based on their risk profile and investment
horizon.
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.
