DSP Nifty Smallcap 250 Index Fund NFO Investment Objective:
The investment objective of the Scheme is to generate returns that are commensurate with the performance of the Nifty Smallcap 250 Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be achieved.
(source: dspim.com)
Things to know before you invest:
What is in DSP Nifty Smallcap 250 Index Fund?
- This is an index fund that replicates the Nifty Smallcap 250 Index – same stocks, same weights.
- By matching the Nifty Smallcap 250 Index, it allows you to invest in midcap companies.
- The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.
Why should one invest in DSP Nifty Smallcap 250 Index Fund?
- The Nifty Smallcap 250 includes companies in the early growth phase, offering exposure to businesses that have the potential to become future midcaps and eventually large caps.
- Smallcaps often operate in fast-growing, niche, or under-researched segments, allowing investors to benefit from structural domestic growth themes at an earlier stage.
- Relatively low-cost exposure compared to many active smallcap funds, which typically have higher expense ratios and greater performance dispersion.
- Can help you beat the impact of rising prices over the long term, provided you can handle higher volatility in the short to medium term.
- Since the fund replicates an index and does not rely on an active manager, it removes human decision-making bias and provides a transparent, rules-based approach to smallcap investing.
- As wealth creation increasingly broadens beyond the top 100 and top 250 companies, the Nifty Smallcap 250 enables investors to participate in the expanding universe of emerging businesses.
Who should invest in DSP Nifty Smallcap 250 Index Fund?
- Consider this fund if you
- Want exposure to India’s fast-growing small-sized companies in a single, diversified fund.
- Seek long-term wealth creation potential and are comfortable with higher volatility along the way.
- Prefer low-cost, rules-based passive investing over high-fee active smallcap strategies.
- Can stay invested for 7-10 years or more, allowing time for smallcaps to recover from temporary market corrections.
- Understand that smallcaps carry higher risks sharper drawdowns and longer recovery periods than large caps.
- Do not chase recent performance but instead believe in disciplined long-term investing in the smallcap segment.
Rethink before you invest
- DSP Nifty Smallcap 250 Index Fund or ETF carries Very High Risk. Smallcaps can experience far sharper rises and much deeper falls than midcaps or large caps.
- Expect very high short-term volatility, especially during periods of market stress. Smallcaps typically correct the fastest and can take extended periods to recover.
- Even though the fund invests in an Index, it is fully exposed to equity and smallcap-specific risks. Sharp temporary drawdowns, liquidity risks, and higher sensitivity to market cycles are possible.
- Returns may be slightly lower than the index due to expense ratio, cash positions, and tracking error.
- Not suitable for short-term or low-risk investors. Smallcap investing typically requires a long horizon (10+ years) for volatility to smoothen and for the growth potential to play out.
(source: dspim.com)
DSP Nifty Smallcap 250 Index Fund NFO:
| Mutual Fund | DSP Mutual Fund |
| Scheme Name | DSP Nifty Smallcap 250 Index Fund |
| Objective of Scheme | The investment objective of the Scheme is to generate returns that are commensurate with the performance of the Nifty Smallcap 250 Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be achieved. |
| Scheme Type | Open Ended |
| Scheme Category | Other Scheme – Index Funds |
| New Fund Launch Date | 24 Nov 2025 |
| New Fund Earliest Closure Date | 08 Dec 2025 |
| New Fund Offer Closure Date | 08 Dec 2025 |
| Indicate Load Separately | |
| Minimum Subscription Amount | • During NFO: Rs. 100/- and any amount thereafter |
| For Further Details Please Visit Website | https://www.dspim.com |
(source: https://www.amfiindia.com/)
DSP Nifty Smallcap 250 Index Fund NFO
Application Form
Scheme Documents
(source: dspim.com)
DSP Nifty Smallcap 250 Index Fund NFO Riskometer:
(source: dspim.com)