DSP Mutual Fund has introduced four new passive schemes focused on India’s mid-cap and small-cap markets. The schemes include:
DSP Nifty Midcap 150 Index Fund
DSP Nifty Midcap 150 ETF
DSP Nifty Smallcap 250 Index Fund
DSP Nifty Smallcap 250 ETF
With this launch, DSP expands its portfolio of index-based products. The New Fund Offer (NFO) for all four schemes will remain open from November 24 to December 8.
Which Indices Will These Schemes Track?
These schemes track the Nifty Midcap 150 and Nifty Smallcap 250 indices.
Nifty Midcap 150 includes companies ranked 101–250 in the Nifty 500.
Nifty Smallcap 250 covers companies ranked 251–500.
Both indices help investors gain wide exposure to companies outside the large-cap segment.
Midcap–Smallcap Index Performance
The Nifty Midcap 150 TRI has given an average 10-year rolling return of 16.2% as of October 31, 2025. This is higher than the 12.6% average return of the Nifty 500 TRI.
The Nifty Smallcap 250 TRI has delivered a 10-year average rolling return of 13.5%.
Although mid-cap and small-cap indices may see deeper losses during market downturns, they often offer better long-term growth potential.
Sector Focus of the Indices
The Smallcap 250 Index has a big presence in sectors that have fewer large-cap players, such as:
Capital markets
Industrial products
Healthcare equipment
Building materials
Textiles
The Midcap 150 Index gives exposure to mid-sized companies that generally have more stable earnings compared to small caps.
Lower Overlap with Active Funds
DSP notes that these indices have relatively low overlap with active mutual funds.
The Midcap 150 overlaps only 32% with active mid-cap funds.
The Smallcap 250 overlaps only 18% with active small-cap funds.
This low overlap gives investors a more diversified portfolio when combining passive and active strategies.
DSP’s Statement on the New Launch
Anil Ghelani, Head of Passive Investments and Products at DSP Mutual Fund, said these schemes offer structured, rules-based exposure to the mid-cap and small-cap categories.
While the schemes aim to track their respective total return indices, some tracking error may occur.
DSP also reminds investors that past index performance does not guarantee future returns.
