NFO Alert: DSP Mutual Fund Launches DSP BSE MidSmall Private Banks ETF

DSP Mutual Fund has opened subscriptions for the DSP BSE MidSmall Private Banks ETF through a New Fund Offer (NFO).  

The offer opened on 28 July 2026 and will close on 30 July 2026. It is an open-ended exchange-traded fund (ETF) classified under the Equity – Sectoral Banking category. 

The scheme is available under the Growth option with a minimum investment of ₹5,000. There is no lock-in periodand no exit load applicable under the scheme details. 

Benchmark-Based Investment Strategy 

The fund has been designed to track the BSE MidSmall Private Banks Total Return Index (TRI). According to the scheme information, its objective is to generate returns in line with the benchmark index, subject to tracking error. 

As a passive fund, the portfolio will largely mirror the index rather than investing on the basis of individual stock selection. Any variation in returns from the benchmark may arise because of tracking error and operating expenses. 

Exposure Limited to Mid and Small Private Banks 

The ETF will invest in companies that form part of the BSE MidSmall Private Banks TRI, providing exposure only to listed mid-cap and small-cap private sector banks. Unlike diversified banking funds, the scheme is restricted to this segment of the banking industry. 

Since the portfolio follows a predefined index, changes in the fund's holdings will generally reflect revisions made to the benchmark. 

Fund Details 

The scheme has been assigned a 'Very High' risk rating under the Riskometer. It will be managed by Anil Ghelani, Diipesh Shah and Neha Rathi. 

DSP Mutual Fund has stated that the investment strategy is to replicate the performance of the benchmark index as closely as possible while managing tracking differences. The benchmark for the scheme is the BSE MidSmall Private Banks TRI. 

Read More: Invesco Mutual Fund Files Draft With Sebi for Invesco India Nifty It ETF! 

Conclusion 

Subscriptions for the DSP BSE MidSmall Private Banks ETF will close on 30 July 2026. The fund follows a passive investment strategy linked to the BSE MidSmall Private Banks TRI. 

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.