DSP Asset Managers Private Limited has filed draft scheme information documents for launching the DSP Nifty Smallcap 250 Index Fund. This passive investment fund is designed to replicate and track the performance of the Nifty Smallcap 250 Index, providing investors with exposure to 250 small-cap companies listed on the Indian equity market.
The scheme is an open-ended index fund with no exit load structure, making it investor-friendly for redemptions. The fund offers 2 plans: Regular Plan and Direct Plan, both available with Growth and Income Distribution cum Capital Withdrawal (IDCW) options. The New Fund Offer price is set at ₹10 per unit during the NFO period. The minimum application amount during NFO and continuous basis is ₹100 and any amount thereafter, with no minimum redemption requirement.
The scheme will maintain a minimum of 95% allocation to equity and equity-related securities of companies constituting the Nifty Smallcap 250 Index, with 0% to 5% in cash and cash equivalents. The fund employs a passive investment strategy, holding all securities that comprise the benchmark index in the same proportion as the index. The scheme will invest in all 250 small-cap stocks in equal weightage, tracking their composition precisely.
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The scheme is managed by Mr Anil Ghelani (27 years of experience) and Mr Diipesh Shah (23 years of experience). Under normal circumstances, tracking error is not expected to exceed 2% per annum, whilst tracking difference is targeted at 50 basis points over and above the actual Total Expense Ratio charged. The estimated annual recurring expenses will be up to 1% of daily net assets.
The NFO will remain open for a minimum of 3 working days and a maximum of 15 days. Investors can benefit from a Systematic Investment Plan (SIP), requiring minimum instalments of ₹100, with a minimum of 12 instalments. Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) facilities are available, allowing investors to transfer or withdraw fixed amounts regularly at predetermined intervals.
The scheme shall have a minimum of 20 investors each, with no single investor accounting for more than 25% of the corpus. These conditions must be complied with on a calendar quarter basis. In case the 20-investor condition is not met, the scheme will be automatically wound up and units redeemed at the applicable Net Asset Value.
DSP Nifty Smallcap 250 Index Fund provides a straightforward passive investment option for investors seeking exposure to the small-cap segment of the Indian equities market. With no exit load, flexible investment options through SIP/STP/SWP, and competitive expense ratios, the scheme aims to track the Nifty Smallcap 250 Index closely whilst maintaining minimal tracking error for investors seeking long-term wealth creation through passive index investing.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.
Investments in Mutual Funds are subject to market risks. Read all related documents carefully before investing.
Published on: Nov 5, 2025, 9:49 AM IST
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