DSP Mutual Fund today announced the launch of the DSP MSCI India ETF, an open-ended exchange-traded fund that aims to replicate the performance of the MSCI India Index (TRI). The ETF provides investors an opportunity to invest in India’s large- and mid-cap companies through a globally tracked, well-established benchmark.

The DSP mutual fund press release states: "The MSCI India Index, which is part of MSCI’s Global Investable Market Indexes (GIMI) framework, includes a diversified mix of Indian equities across major sectors. It illustrates the changing nature of India’s economy, transitioning from industrial-led growth in the 1990s to a services-focused landscape today. The index encompasses a wide range of large and mid-cap stocks, highlighting the depth and development of the Indian market."

Over the long term, the MSCI India Index has delivered around 14% CAGR over the past 27 years, highlighting its ability to reflect India’s growth potential while staying resilient across market cycles.

“The MSCI India Index has long been a preferred benchmark for global investors to participate in India’s growth story. With the DSP MSCI India ETF, we aim to make this opportunity easily accessible to investors in India and abroad. This ETF allows them to gain diversified exposure to India’s large and mid-cap companies through a globally recognized, transparent, and disciplined index methodology. We believe this product will serve investors seeking efficient participation in India’s long-term economic expansion,” said Anil Ghelani, CFA – Head – Passive Investments & Products at DSP Mutual Fund.

The New Fund Offer (NFO) for DSP MSCI India ETF will run from November 10 to November 17, 2025. The DSP MSCI India ETF offers a tax-efficient way to tap into India’s growth story. Unlike overseas-listed ETFs, dividends received and portfolio rebalancing within the fund are not taxed immediately in India. This structure boosts potential post-tax returns, especially for NRI and offshore investors looking to gain exposure to Indian equities through a domestically domiciled vehicle.

The MSCI India Index’s diversified composition also reduces concentration risk compared to narrower benchmarks like the Nifty 50, while maintaining strong representation of India’s key sectors and high-quality businesses.

The launch occurs at a time when foreign institutional ownership in Indian equities has declined significantly since late 2021, with outflows of about ₹1.4 trillion. As global sentiment towards India improves, a possible reversal in FII flows could especially benefit MSCI India Index constituents—making this an ideal time for investors to participate through the DSP MSCI India ETF.

"The MSCI India Index offers a robust representation of India’s evolving economy, with a balance across financials, technology, energy, and consumer sectors. Over time, it has demonstrated consistent performance with relatively stable drawdowns compared to broader benchmarks. Through the DSP MSCI India ETF, investors can now capture this growth potential efficiently and with the added benefit of local tax advantages,” said Gurjeet Kalra, Business Head – Passive Investments, DSP Mutual Fund.