{"id":15534,"date":"2025-11-24T13:04:37","date_gmt":"2025-11-24T07:34:37","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=15534"},"modified":"2026-01-07T12:05:44","modified_gmt":"2026-01-07T06:35:44","slug":"dsp-nifty-smallcap-250-fund-nfo","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/news\/dsp-nifty-smallcap-250-fund-nfo\/","title":{"rendered":"DSP Nifty Smallcap 250 Index Fund NFO: A Broad-Based Small Cap Opportunity for 2025"},"content":{"rendered":"

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DSP Mutual Fund<\/a> has introduced a new passive equity scheme \u2014 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.<\/p>\n

With a very high-risk profile, this NFO may interest investors who want long-term wealth creation through small-cap index investing.<\/p>\n

<\/span>Key NFO Details<\/strong><\/span><\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Detail<\/strong><\/td>\nInformation<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Fund Name<\/strong><\/td>\nDSP Nifty Smallcap 250 Index Fund<\/td>\n<\/tr>\n
NFO Period<\/strong><\/td>\n24 Nov 2025 to 8 Dec 2025<\/td>\n<\/tr>\n
Allotment Date<\/strong><\/td>\n12 Dec 2025<\/td>\n<\/tr>\n
Category<\/strong><\/td>\nEquity \u2013 Small Cap Index<\/td>\n<\/tr>\n
Risk Level<\/strong><\/td>\nVery High<\/td>\n<\/tr>\n
Fund Type<\/strong><\/td>\nOpen-ended<\/td>\n<\/tr>\n
Benchmark<\/strong><\/td>\nNifty Smallcap 250 Index<\/td>\n<\/tr>\n
Minimum Investment<\/strong><\/td>\n\u20b910,000 (lumpsum), \u20b93,000 (SIP)<\/td>\n<\/tr>\n
Exit Load<\/strong><\/td>\n0%<\/td>\n<\/tr>\n
Short-term capital gains (STCG)<\/strong><\/td>\nReturns are taxed at 20% if you redeem before 1 year<\/td>\n<\/tr>\n
Long-term capital gains (LTCG)<\/strong><\/td>\nAfter 1 year, returns above \u20b91.25 lakh in a financial year are taxed at 12.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/span>Investment Objective<\/strong><\/span><\/h3>\n

The scheme seeks to generate returns that match the performance of the Nifty Smallcap 250 Index<\/a>, subject to tracking error. The index captures a broad universe of small-cap companies with high growth potential.<\/p>\n

<\/span>How Does This Compare with the Category?<\/strong><\/span><\/h2>\n\n\n\n\n\n\n\n\n\n\n\n
Time Period<\/strong><\/td>\nCategory Avg. Returns (CAGR)<\/strong><\/td>\n<\/tr>\n<\/thead>\n
1 Year<\/td>\n1.52%<\/td>\n<\/tr>\n
2 Years<\/td>\n3.52%<\/td>\n<\/tr>\n
3 Years<\/td>\n14.79%<\/td>\n<\/tr>\n
4 Years<\/td>\n16.71%<\/td>\n<\/tr>\n
5 Years<\/td>\n17.83%<\/td>\n<\/tr>\n
7 Years<\/td>\n22.01%<\/td>\n<\/tr>\n
10 Years<\/td>\n22.37%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Small caps tend to perform well over longer periods but carry higher volatility in the short term.<\/p>\n

<\/span>Top Performing Funds in This Category<\/strong><\/span><\/h3>\n\n\n\n\n\n\n\n
Fund Name<\/strong><\/td>\nFund Size<\/strong><\/td>\nReturns<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Motilal Oswal Nifty Smallcap 250 Index Fund<\/a><\/td>\n\u20b91,044 Cr<\/td>\n24% p.a. (5Y)<\/td>\n<\/tr>\n
Nippon India Nifty Smallcap 250 Index Fund<\/a><\/td>\n\u20b92,690 Cr<\/td>\n23% p.a. (5Y)<\/td>\n<\/tr>\n
Kotak Nifty Smallcap 50 Index Fund<\/a><\/td>\n\u20b9169 Cr<\/td>\n29% p.a. (Since Inception)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

These funds provide context on the historical performance of small-cap index offerings.<\/p>\n

<\/span>Should You Invest in This NFO?<\/strong><\/span><\/h3>\n

You may consider this NFO if:
\n\u2022 You want diversified exposure to small-cap companies<\/a> through a passive index fund.
\n\u2022 You are comfortable with very high risk and sharp market swings.
\n\u2022 You are focused on long-term wealth creation and can remain invested through cycles.<\/p>\n

Small-cap index funds work best for investors with a high risk appetite and patience for long-term growth.<\/p>\n

<\/span>About DSP Mutual Fund<\/strong><\/span><\/h2>\n

DSP Mutual Fund manages \u20b92,12,960 Cr AUM (as of Sept 30, 2025) across 54 schemes.<\/p>\n

Fund Managers<\/strong><\/p>\n