DSP Mutual Fund today 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 benchmark that dynamically invests across large, mid, and small-cap companies while focusing solely on quality businesses.

Indian equity markets often fluctuate in cycles, with large, mid, and small caps taking turns to outperform. For most investors, choosing where to invest, how much to allocate, and when to switch can be challenging and expensive.

According to the DSP press release, "This ETF removes 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."

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

Since its inception in October 2009, the Nifty 500 Flexi Cap Quality 30 Index has achieved a 17.6% CAGR, surpassing the Nifty 500 TRI across market cycles. Its strength lies in combining dynamic allocation with a focus on quality and a concentrated 30-stock portfolio. Notably, it has also protected investors during downturns - for example, dropping less than the broader market in 2011 and 2018, and limiting losses during the 2020 COVID crash while still capturing the subsequent recovery, per the press release.

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

The ETF is designed for investors looking for long-term capital growth through a single, easy-to-use product that takes advantage of opportunities across market cycles, while preserving the focus on quality and the efficiency of a passive, low-cost setup.

“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," said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund. "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.”