Upcoming NFO: DSP Mutual Fund Files Draft with SEBI for Nifty FMCG ETF

DSP Mutual Fund has filed a draft scheme information document for the DSP Nifty FMCG ETF. The proposed fund is an open-ended Exchange Traded Fund (ETF) that will track the Nifty FMCG Index. It does not have a performance record yet, as it is a new offering.  

The document was dated April 30, 2026, and has been submitted under SEBI (Mutual Funds) Regulations. 

Investment Approach 

The scheme will follow a passive structure. It will invest in stocks forming part of the Nifty FMCG Index in the same proportion as the index. Returns are expected to move in line with the benchmark, subject to tracking error.  

No assurance has been provided on achieving the stated investment objective. 

Asset Allocation 

Under normal conditions, 95% to 100% of the scheme’s assets will be invested in equity and equity-related securities of index constituents. Up to 5% may be held in cash or cash equivalents, including treasury bills and government securities.  

The fund may also use derivatives, capped at 20% of net assets, mainly for rebalancing purposes. 

Index Composition 

The underlying index consists of 15 FMCG companies. Selection is based on free-float market capitalisation and liquidity criteria. The index is reviewed twice a year.  

As of February 2026, ITC had a weight of 27.8%, followed by Hindustan Unilever at 19.8% and Nestlé India at 8.8%.  

Subscription and Pricing 

Units will be issued at a face value of ₹10 during the New Fund Offer (NFO). The allotment price will be linked to the index level. The minimum application amount during the NFO is ₹5,000.  

Creation unit size has been fixed at 25,000 units for large investors and market makers. 

Listing and Liquidity 

The ETF is proposed to be listed on the NSE and BSE. Units can be bought and sold on trading days through the stock exchanges. Market makers will provide 2-way quotes to support liquidity.  

The NAV will be disclosed daily, while indicative NAV will be updated during trading hours. 

Read More: Mutual Fund Houses Lower Exit Loads Amid Shift in Investor Preferences! 

Conclusion 

The draft outlines a sector-focused ETF structured to replicate an existing FMCG index, with standard ETF features on pricing, listing and portfolio allocation. 

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.