DSP Mutual Fund files draft papers with SEBI for four new equity schemes. Details here

These schemes aim to track the performance of selected benchmark indices, providing investors with cost-effective, transparent, and diversified participation in these market segments.

The following schemes for which draft papers have been filed are:

• DSP Nifty Smallcap 250 Index Fund

• DSP Nifty Midcap 150 Index Fund

• DSP Nifty Smallcap 250 ETF

• DSP Nifty Midcap 150 ETF

These schemes aim to generate returns that correspond closely to the performance of their underlying indices, subject to tracking error.

Index Funds provide a convenient way for investors to gain exposure to midcap and smallcap equities while ensuring that the portfolio composition mirrors the benchmark.

The DSP Nifty Smallcap 250 ETF and DSP Nifty Midcap 150 ETF are structured as ETFs and are listed on stock exchanges such as NSE and BSE. These schemes also aim to track the performance of their respective indices, providing investors with liquidity, flexibility, and the ability to trade units like equity shares.

Investors can buy or sell ETF units at market prices on the exchange or participate in the creation/redemption of units in large sizes through authorised participants. ETFs offer transparency and a low-cost alternative for investors seeking index-based exposure in the midcap and small cap segments.