NFO Alert: DSP Mutual Fund Launches Nifty500 Flexicap Quality 30 Index Fund

In an effort to simplify equity investing and address the common challenges, DSP Mutual Fund has launched the DSP Nifty500 Flexicap Quality 30 Index Fund. This innovative, low-cost fund combines the best of both worlds: quality-driven stock selection and dynamic market-cap allocation.

The New Fund Offer (NFO) for the DSP Nifty500 Flexicap Quality 30 Index Fund opens for subscription on August 8th, 2025, and will close on August 22nd, 2025. 

About DSP Nifty500 Flexicap Quality 30 Index Fund

The DSP Nifty500 Flexicap Quality 30 Index Fund is built around a unique flexicap strategy that uses quality filters to select stocks and dynamic market-cap allocation to enhance returns. It mirrors the Nifty500 Flexicap Quality 30 Index, an index designed to include 30 fundamentally strong companies, comprising 10 large-cap, 10 mid-cap, and 10 small-cap stocks. This allocation is equal within each segment to ensure balanced exposure across various market caps.

Quality-Driven Approach: Focus On Strong Fundamentals

The index identifies companies with robust financials, using criteria such as high Return on Equity (ROE), low debt, and strong earnings growth. This focus on quality ensures that only fundamentally strong companies make it into the portfolio, allowing investors to benefit from resilience during volatile market conditions.

Dynamic Allocation Using Momentum Triggers

One of the most distinct features of the DSP Nifty500 Flexicap Quality 30 Index Fund is its dynamic allocation model. The fund uses momentum triggers to allocate between large, mid, and small-cap stocks. 

The allocation is adjusted quarterly based on the performance of these segments. The fund employs a clear, rule-based signal based on the ratio of small and mid-caps to large caps compared to their 200-Day Moving Average (200 DMA).

Index Performance Track Record

Since its inception, the Nifty500 Flexicap Quality 30 Index has demonstrated impressive returns. With a CAGR of 18.1% from October 2009 to June 2025, it has significantly outperformed the Nifty 500 TRI, which returned 13.0% during the same period. The index has also proven resilient during volatile market phases due to its focus on quality stocks. Over rolling 5-year SIP periods, the index returned 20.3%, compared to 15.8% by Nifty 500 TRI.

Read More: Nifty 50 Index Funds: How It Has Performed Over the Last 5 Years?! 

Conclusion 

In conclusion, the DSP Nifty500 Flexicap Quality 30 Index Fund offers a unique opportunity for investors to participate in a quality-driven, dynamic flexicap strategy. 

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.