Upcoming NFO: DSP Mutual Fund Files Draft for DSP BSE Insurance ETF

DSP Mutual Fund has filed the draft Scheme Information Document for the DSP BSE Insurance ETF. The document is dated August 21, 2026, and describes the proposed scheme as an open-ended ETF tracking the BSE Insurance Index.  

Investment Details 

The scheme will invest 95% to 100% of its assets in equity and equity-related securities of companies forming part of the BSE Insurance Index. Cash and cash equivalents can account for 0% to 5% of the portfolio.  

The ETF will follow the index weights rather than selecting stocks separately. Its benchmark will be the BSE Insurance Index (TRI), with returns expected to track the index subject to tracking error.  

The draft says tracking error is not expected to exceed 2% a year under normal market conditions.  

Stocks in the Index 

As of July 31, 2026, SBI Life Insurance Company had the largest weight at 26.72%, followed by HDFC Life Insurance Company at 19.06%. ICICI Lombard General Insurance Company and Max Financial Services had weights of 12.79% and 12.65%, respectively.  

The index is derived from insurance companies in the BSE 1000 Index. Its constituents are weighted using float-adjusted market capitalisation, with a stated individual stock weight cap of 25%.  

Exit Load and Investment Size 

There is no exit load for redemptions made by market makers or large investors directly with the fund in creation unit size. For other transactions, the exit load is also nil.  

Units other than creation unit size cannot be directly redeemed with the fund and have to be sold on the stock exchange.  

The minimum application amount during the NFO will be ₹5,000, in multiples of ₹1. On the exchange, units can be bought or sold in a minimum lot of one unit.  

Listing and NFO 

The units are proposed to be listed on NSE and BSE. The NFO opening and closing dates have not been specified in the draft. The NFO will remain open for at least three working days and up to 15 days.  

Read More: Mutual Fund Invests ₹12,944 Crore in 2026 IPOs; 3 Fund Houses Account for Over 52%! 

Conclusion 

The draft sets out the ETF's investment allocation, index composition, exit load and proposed listing details. NFO dates are yet to be announced. 

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.