#DSPFlexiCapETF #FirstFlexiCapETF #MutualFundsIndia #ETFs #WealthCreation #PassiveInvesting #SmartInvesting #DSPMutualFund
Mumbai: In a landmark development for India’s investment landscape, DSP Mutual Fund has announced the launch of the DSP Nifty 500 FlexiCap Quality 30 ETF, the country’s first-ever Flexi Cap Exchange Traded Fund (ETF). The innovative product provides investors with a dynamic, low-cost, and efficient way to gain exposure across large-cap, mid-cap, and small-cap companies, while focusing on fundamentally strong businesses.
A First-of-Its-Kind Investment Offering
The DSP Nifty 500 FlexiCap Quality 30 ETF tracks the Nifty 500 FlexiCap Quality 30 Total Return Index (TRI). Unlike traditional equity ETFs that focus on a specific market capitalisation, this product brings the flexibility of dynamic allocation into a passive structure.
The underlying index uses a momentum-based allocation strategy to decide weightages across large, mid, and small-cap segments. Within those allocations, it selects companies that meet defined quality parameters, ensuring investors benefit from exposure to strong, resilient businesses.
This innovation is designed to help investors reduce the hassle of manually managing asset allocation while still capturing opportunities across different phases of market cycles.
Why Flexi Cap, Why Now?
The timing of the launch is significant. With Indian equity markets seeing heightened investor participation and a growing interest in passive investing, DSP’s new ETF seeks to meet demand for diversified yet disciplined investment options.
Over the past few years, Flexi Cap mutual funds have become popular among investors for their ability to move between different market caps. Now, DSP is taking the concept further by offering the first ETF in this category, combining the benefits of Flexi Cap allocation with index-based transparency and lower costs.
Strong Historical Performance of the Index
According to NSE data, the Nifty 500 FlexiCap Quality 30 Index — the benchmark for the ETF — has delivered a 17.6% compound annual growth rate (CAGR) since its inception in October 2009.
Notably, the index has outperformed the broader Nifty 500 TRI across multiple market cycles. During downturns, including in 2011, 2018, and the COVID-19 crash in 2020, it recorded relatively smaller declines, showcasing its ability to protect investor wealth during volatile times.
This blend of growth and downside protection makes the ETF particularly attractive for long-term investors looking for stability as well as capital appreciation.
NFO Details
The New Fund Offer (NFO) for the DSP Nifty 500 FlexiCap Quality 30 ETF opens on September 25, 2025, and will close on October 6, 2025. The ETF will be listed on both the NSE and BSE post the NFO period, allowing investors to buy and sell units easily, just like any stock.
The product is targeted at investors who:
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Seek long-term capital growth.
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Prefer passive, low-cost structures over actively managed funds.
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Want diversified exposure to quality companies across market caps.
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Aim to invest in a product that adapts automatically to market cycles.
Expanding DSP’s Passive Product Portfolio
DSP Mutual Fund has been steadily building a robust suite of passive investment options. Its offerings already include index funds, ETFs, and rule-based smart beta strategies across equity, debt, and commodities.
With the launch of the Flexi Cap ETF, DSP strengthens its positioning as a pioneer in innovative passive products in India.
Speaking on the launch, a DSP Mutual Fund spokesperson said:
“We believe investors should have access to products that combine the best of flexibility, quality, and cost efficiency. The DSP Nifty 500 FlexiCap Quality 30 ETF allows investors to participate in India’s equity growth story across segments while focusing on fundamentally strong companies. With this product, we aim to empower long-term wealth creation in a disciplined manner.”
The Growing Relevance of ETFs in India
Exchange Traded Funds (ETFs) have been steadily gaining traction in India. Their low-cost structure, transparency, and liquidity make them appealing to both retail and institutional investors.
Industry data suggests that the ETF segment in India has been growing at a double-digit CAGR, driven by investors seeking efficient alternatives to traditional active funds. The addition of a Flexi Cap ETF is expected to further expand the market by attracting investors who want the best of both worlds — flexibility in allocation and discipline in execution.
Why Investors Should Consider This ETF
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Diversification Across Caps: Gain access to large, mid, and small-cap companies without managing allocations manually.
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Focus on Quality: Invest only in companies that meet strong financial and business fundamentals.
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Dynamic Adaptability: Exposure automatically shifts based on momentum, helping capture opportunities during different phases of market cycles.
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Cost Efficiency: Lower expense ratio compared to actively managed Flexi Cap funds.
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Proven Back-Tested Performance: Strong long-term track record of the underlying index since 2009.
The launch of the DSP Nifty 500 FlexiCap Quality 30 ETF is a milestone moment for Indian investors, offering them a smarter way to invest across market caps with minimal effort and lower costs. By combining the strength of Flexi Cap allocation, quality filters, and passive investing, DSP Mutual Fund has opened a new gateway for long-term wealth creation.
As investors increasingly look for products that provide simplicity, flexibility, and growth potential, this ETF could well emerge as a game-changer in India’s passive investing journey.
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