DSP Mutual Fund Filed Draft With SEBI for Nifty500 Flexicap Quality 30 ETF

DSP Mutual Fund has submitted draft documents to the Securities and Exchange Board of India (SEBI) for the launch of the DSP Nifty500 Flexicap Quality 30 ETF. The proposed scheme is structured as an open-ended exchange-traded fund that will replicate and track the Nifty500 Flexicap Quality 30 Index.

Investment Objective and Allocation

The scheme’s stated objective is to generate returns in line with the Nifty500 Flexicap Quality 30 Index, subject to tracking error. Under normal conditions, 95-100% of assets will be invested in equities that form part of the index, while up to 5% may be held in cash or equivalents.

Index Structure

The Nifty500 Flexicap Quality 30 Index selects 30 stocks, 10 each from large-cap, mid-cap, and small-cap segments. Stock selection is based on the six-month average free-float market capitalisation. Index reviews are conducted semi-annually in June and December, with rebalancing carried out quarterly in March, June, September, and December.

Listing and Trading

The ETF units are proposed to be listed on both the BSE and NSE. Trading will be available in a minimum lot of one unit. Market makers will provide liquidity through two-way quotes on trading days. 

Direct subscription or redemption with the fund will be possible in creation unit sizes of 1,50,000 units, subject to applicable conditions.

New Fund Offer Details

The New Fund Offer (NFO) will accept a minimum investment of ₹5,000, with the subscription period open for at least 3 working days and not exceeding fifteen. Each unit will have a face value of ₹10, with allotment price linked to one-thousandth of the value of the index at the time of allotment.

Fund Managers and Expenses

The scheme will be managed by Anil Ghelani and Diipesh Shah. Annual recurring expenses are capped at 1% of daily net assets, as permitted under SEBI regulations. NAVs will be declared daily on AMFI and DSP websites, and an indicative NAV will be updated every 15 seconds during market hours.

Read More: PhonePe and DSP Finance Launch Loans Against Mutual Funds up to ₹2 Crore!

Conclusion

DSP has filed this draft scheme as part of its passive investment offerings. The proposal is now subject to SEBI’s review before launch.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.