DSP Mutual Fund has announced the launch of its new exchange-traded fund (ETF) — the DSP Nifty Smallcap 250 ETF. This fund is designed to give investors exposure to the Nifty Smallcap 250 Total Return Index (TRI). which represents some of India’s fastest-growing smallcap companies.
DSP Nifty Smallcap 250 ETF
The DSP Nifty Smallcap 250 ETF aims to follow the Nifty Smallcap 250 Index closely. It invests in the same group of smallcap companies that form the index. The goal is to match the index’s performance as much as possible, giving investors a chance to benefit from the growth of emerging and fast-growing small businesses in India.
However, like any market-linked product, the fund’s returns will depend on how these stocks perform in the market. It does not guarantee any fixed return.
Key Highlights
- Fund Name: DSP Nifty Smallcap 250 ETF
- Category: Exchange Traded Fund (Equity – Smallcap)
- Benchmark: Nifty Smallcap 250 TRI
- Face Value: ₹10 per unit
- Exit Load: Nil (since units are traded directly on the stock exchange)
- Listing: To be listed on both NSE and BSE
- Minimum Investment (during NFO): ₹5,000 and in multiples of ₹1 thereafter
Investment Strategy
The fund will invest 95% to 100% of its total assets in companies that are part of the Nifty Smallcap 250 Index.
The remaining 0% to 5% may be parked in short-term instruments like TREPS, treasury bills, or government securities to manage liquidity.
This allocation helps the ETF stay closely aligned with its benchmark while maintaining flexibility for redemptions and market volatility.
Tracking and Transparency
DSP aims to keep the tracking error — the difference between fund returns and index performance — within 2% annually.
It will also disclose the daily tracking error and monthly tracking difference on its official website, ensuring complete transparency for investors.
Who Can Invest
This ETF is meant for investors who:
- Want to participate in the smallcap growth story
- Are comfortable with high market risk
- Have a long-term investment horizon
The fund falls under the “High Risk” category, which means short-term volatility may be significant, but long-term potential can be rewarding.
Regulatory & Listing Details
DSP Asset Managers Private Limited filed this scheme with SEBI under the SEBI (Mutual Fund) Regulations, 1996.
The fund has also received approval for listing from BSE (Letter No. LO/IPO/AP/MF/IP/51/2025-26) and NSE (Letter No. NSE/LIST/5925) dated October 9, 2025.
The Trustee for this scheme is DSP Trustee Private Limited, while the fund is managed by DSP Asset Managers Pvt. Ltd.
Conclusion
The launch of the DSP Nifty Smallcap 250 ETF gives investors a convenient, low-cost way to invest in India’s promising smallcap segment.
By tracking the Nifty Smallcap 250 Index, the fund allows investors to diversify across multiple small companies — a space known for both higher risk and potentially higher long-term rewards.
Source: SEBI , 04 November 2025.
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