DSP MF launches DSP Nifty 500 Index Fund, DSP Nifty Next 50 ETF

Mumbai: DSP Mutual Fund on Friday announced the launch of two new passive investment products—the DSP Nifty 500 Index Fund and the DSP Nifty Next 50 ETF—aimed at offering investors diversified, transparent and cost-efficient exposure to India’s equity markets through established benchmark indices.

The launches underline DSP Mutual Fund’s push to expand its passive investment platform, positioning these products as simple, long-term building blocks that can complement active strategies across market cycles.

The DSP Nifty 500 Index Fund is an open-ended scheme designed to track the Nifty 500 Index, which comprises the top 500 listed companies across large-, mid- and small-cap segments. Together, these companies represent over 90 per cent of India’s total listed market capitalisation, making the index one of the broadest representations of the domestic equity universe.

Unlike narrower indices, the Nifty 500 offers automatic realignment across market capitalisations as conditions change, reducing the need for frequent portfolio rebalancing.

The DSP Nifty Next 50 ETF will track the Nifty Next 50 Index, which includes companies ranked 51 to 100 by market capitalisation within the Nifty 100 universe. This segment has historically acted as a transition space between established large caps and emerging leaders, offering higher growth potential along with greater volatility.

Both schemes will aim to closely mirror their respective indices, subject to tracking error, supported by DSP’s dedicated passive investment team and global best practices in index replication and execution.

The NFO for both schemes opens on December 19, 2025, and closes on December 30, 2025. “Passive investing works best when indices are chosen for the role they play in a portfolio, not just for recent performance,” said Anil Ghelani, CFA, Head–Passive Investments & Products at DSP Mutual Fund.