DSP Mutual Fund has announced the launch of two new passive investment products on December 19, 2025.
These include the DSP Nifty 500 Index Fund and the DSP Nifty Next 50 ETF, both introduced under the New Fund Offer (NFO).
The main objective of these funds is to give investors a diversified, transparent, and low-cost way to invest in the Indian stock market using well-known benchmark indices.
With this launch, DSP Mutual Fund continues to strengthen its passive investment platform. The company aims to offer simple investment options that can work alongside active investment strategies across different market conditions.
DSP Nifty 500 Index Fund: Broad Market Exposure
The DSP Nifty 500 Index Fund is an open-ended index fund that seeks to replicate the performance of the Nifty 500 Index. This index includes the top 500 listed companies in India, covering large-cap, mid-cap, and small-cap segments.
Together, these companies account for more than 90% of the total market capitalization of India’s listed stock market.
As a result, the Nifty 500 Index provides one of the most comprehensive and balanced views of the Indian equity market.
This fund may be suitable for investors aiming for long-term capital appreciation with exposure across all major market segments.
Balanced and Diversified Investing with Nifty 500
Unlike pure large-cap indices, the Nifty 500 offers a well-balanced and diversified investment approach. The allocation between large-, mid-, and small-cap stocks adjusts automatically based on market conditions.
This reduces the need for frequent portfolio changes or individual stock decisions, allowing investors to stay invested through different economic cycles.
The index also has less overlap with actively managed flexi-cap funds, offering broader diversification. Investors can gain market-wide exposure without relying on a fund manager’s stock selection or style, and without taking direct stock-specific risks.
DSP Nifty Next 50 ETF: Exposure to Emerging Market Leaders
The DSP Nifty Next 50 ETF is an open-ended exchange-traded fund that tracks the Nifty Next 50 Index. This index consists of companies ranked 51 to 100 by market capitalization within the Nifty 100.
This segment has historically acted as a stepping stone between established large-cap companies and future market leaders.
It provides exposure to multiple sectors and offers strong long-term growth potential, though it can experience higher volatility.
Who Should Consider These Funds?
The DSP Nifty Next 50 ETF may be suitable for investors with a long investment horizon who can handle short-term market fluctuations and want to strengthen their core equity portfolio.
Both new fund offerings aim to closely replicate their respective indices, though some tracking error may occur.
DSP’s dedicated passive investment team will manage this process by following global best practices in index replication, rebalancing, and execution.
