DSP Mutual Fund has introduced a new passive equity scheme — DSP Nifty Smallcap 250 Index Fund, open for subscription from 24th November to 8th December 2025. The fund aims to mirror the performance of the Nifty Smallcap 250 Index, giving investors exposure to a wide basket of emerging and growth-oriented small-cap companies.
With a very high-risk profile, this NFO may interest investors who want long-term wealth creation through small-cap index investing.
Key NFO Details
| Detail | Information |
| Fund Name | DSP Nifty Smallcap 250 Index Fund |
| NFO Period | 24 Nov 2025 to 8 Dec 2025 |
| Allotment Date | 12 Dec 2025 |
| Category | Equity – Small Cap Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | Nifty Smallcap 250 Index |
| Minimum Investment | ₹10,000 (lumpsum), ₹3,000 (SIP) |
| Exit Load | 0% |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme seeks to generate returns that match the performance of the Nifty Smallcap 250 Index, subject to tracking error. The index captures a broad universe of small-cap companies with high growth potential.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 1.52% |
| 2 Years | 3.52% |
| 3 Years | 14.79% |
| 4 Years | 16.71% |
| 5 Years | 17.83% |
| 7 Years | 22.01% |
| 10 Years | 22.37% |
Small caps tend to perform well over longer periods but carry higher volatility in the short term.
Top Performing Funds in This Category
| Fund Name | Fund Size | Returns |
| Motilal Oswal Nifty Smallcap 250 Index Fund | ₹1,044 Cr | 24% p.a. (5Y) |
| Nippon India Nifty Smallcap 250 Index Fund | ₹2,690 Cr | 23% p.a. (5Y) |
| Kotak Nifty Smallcap 50 Index Fund | ₹169 Cr | 29% p.a. (Since Inception) |
These funds provide context on the historical performance of small-cap index offerings.
Should You Invest in This NFO?
You may consider this NFO if:
• You want diversified exposure to small-cap companies through a passive index fund.
• You are comfortable with very high risk and sharp market swings.
• You are focused on long-term wealth creation and can remain invested through cycles.
Small-cap index funds work best for investors with a high risk appetite and patience for long-term growth.
About DSP Mutual Fund
DSP Mutual Fund manages ₹2,12,960 Cr AUM (as of Sept 30, 2025) across 54 schemes.
Fund Managers
- Anil Ghelani
- Diipesh Shah
DSP Fund House Details
| Detail | Information |
| No. of Schemes | 54 |
| Total AUM | ₹2,12,960 Cr |
| Address | The Ruby, 25th Floor, 29 Senapati Bapat Marg, Dadar (West), Mumbai – 400028 |
| Phone | +91 22 6657 8000 |
More Funds from DSP Mutual Fund
| Fund Name | AUM | 1Y | 5Y |
| DSP India T.I.G.E.R. Fund | ₹5,506 Cr | -1.84% | 29.48% |
| DSP Small Cap Fund | ₹16,868 Cr | 0.96% | 24.31% |
| DSP Natural Resources and New Energy Fund | ₹1,474 Cr | 6.37% | 23.22% |
| DSP ELSS Tax Saver Fund | ₹17,241 Cr | 4.98% | 21.02% |
| DSP Large & Mid Cap Fund | ₹16,530 Cr | 4.41% | 20.31% |
| DSP Nifty 50 Equal Weight Index Fund | ₹2,391 Cr | 10.26% | 19.98% |
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- Capitalmind Liquid Fund NFO: A Stable Short-Term Investment Option for 2025
- Kotak Nifty500 Momentum 50 Index Fund NFO: A Factor-Investing Opportunity for 2025
- Mirae Asset Infrastructure Fund NFO: A Sector-Focused Bet on India’s Growth
Final Thoughts
The DSP Nifty Smallcap 250 Index Fund NFO provides a simple and structured way to participate in India’s small-cap growth story. With high long-term return potential and significant short-term volatility, it may suit investors seeking aggressive growth and broad diversification.
Review your risk appetite and investment horizon before committing to this NFO.
For a seamless and guided investing experience, consider investing in mutual funds with Torus Digital.
