DSP Mutual Fund launches India's first Flexi Cap ETF: Who should invest?

DSP Nifty 500 FlexiCap Quality 30 ETF: DSP Mutual Fund has launched the DSP Nifty 500 FlexiCap Quality 30 ETF, India’s first Flexi Cap Exchange Traded Fund (ETF). It is an open-ended scheme tracking the Nifty500 FlexiCap Quality 30 Index. The new fund offer (NFO) opened for subscription on Thursday, September 26, 2025 and will close on Monday, October 6, 2025. 

 

According to the scheme information document (SID), the investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty500 FlexiCap Quality 30 Index, subject to tracking errors. However, there can be no assurance that the investment objective of the scheme will be achieved. The fund aims to provide investors with exposure across large, mid, and small-cap companies through a single product. 

 

The Nifty 500 FlexiCap Quality 30 TRI allocates across different market capitalisations based on momentum, while focusing on companies meeting certain quality criteria. After the NFO, only Market Makers and Large Investors (with transactions over ₹25 crores) can buy or redeem units directly from the Mutual Fund in creation unit sizes.

 

The minimum application amount is ₹5,000 and in multiples of ₹1 thereafter. The fund will allocate 95-100 per cent in equity and equity-related securities of companies constituting the Nifty500 FlexiCap Quality 30 Index.   ALSO READ | SBI MF's Magnum SIF to debut Oct 1 with hybrid long-short scheme 

Anil Ghelani, CFA, head of passive investments and products at DSP Mutual Fund, said flexibility and quality are two powerful ideas for long-term investing. 

 

"With this ETF, we are offering investors a product that automatically adapts to market phases without the need for constant monitoring or switching. At the same time, by focusing only on quality businesses, the ETF aims to give investors confidence that their money is invested in companies built to last,” he said.

 

Anil Ghelani, CFA, and Diipesh Shah are the designated fund managers for the scheme. 

 

As per the riskometer, the principal invested in the scheme will be at very high risk.

DSP Nifty 500 FlexiCap Quality 30 ETF: Who should invest?

According to SID, the fund is suitable for investors seeking long-term capital growth and investment in equity and equity-related securities covered by the Nifty500 Flexicap Quality 30 Index.

 

Gurjeet Kalra, business head for passive funds at DSP MF, said with the DSP Nifty 500 FlexiCap Quality 30 ETF, investors finally have a simple, transparent and low-cost way to gain exposure across large, mid, and small caps in a single fund. "It may provide an all-weather solution for long-term wealth creation," he said.

 

However, investors should consult their financial advisors if in doubt about whether the scheme is suitable for them.