DSP launches India’s first Flexi Cap ETF - DSP Nifty 500 FlexiCap Quality 30 ETF; NFO to open from Sept 25

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DSP Mutual Fund has announced the launch of the DSP Nifty 500 FlexiCap Quality 30 ETF, India’s first Flexi Cap Exchange Traded Fund (ETF). The ETF tracks the Nifty 500 FlexiCap Quality 30 TRI*, a unique benchmark that dynamically invests across large, mid, and small-cap companies while focusing only on quality businesses.

Indian equity markets often move in cycles, with large, mid, and small caps taking turns to outperform. For most investors, deciding where to invest, how much to allocate, and when to switch can be both difficult and costly. This ETF takes away that complexity. Using a transparent, rule-based framework, it automatically increases exposure to mid and small caps when they are in momentum and shifts towards large caps when they lead. All stocks are chosen based on strict quality filters, ensuring that investors remain anchored in fundamentally strong businesses.

Since inception in October 2009, the Nifty 500 Flexi Cap Quality 30 Index has delivered a 17.6% CAGR**, outperforming the Nifty 500 TRI across market cycles. Its strength has come from combining dynamic allocation with a focus on quality and a concentrated 30-stock portfolio. Importantly, it has also cushioned investors during downturns - for instance, falling less than the broader market in 2011 and 2018, and limiting losses during the 2020 COVID crash while capturing the recovery that followed.

The New Fund Offer (NFO) will be open from September 25 to October 6, 2025.

The ETF is aimed at investors seeking long-term capital growth through a single, convenient product that captures opportunities across market cycles, while maintaining the discipline of quality and the efficiency of a passive, low-cost structure.

“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,” said Anil Ghelani, CFA – Head – Passive Investments & Products at DSP Mutual Fund.

“A true-to-label Flexi Cap strategy has been missing in the Indian market. Most of the diversified or Flexi Cap Funds tend to stay within narrow ranges of allocations towards mid and small caps. 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,” said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund.