The DSP Nifty 500 Index Fund is an open-ended scheme that seeks to track the Nifty 500 Index, which comprises the top 500 listed companies across large-, mid- and small-cap segments. According to data from the National Stock Exchange (NSE), the index represents more than 90% of India’s total listed market capitalisation as of September 30, 2025.
By covering a broad cross-section of the equity market, the Nifty 500 Index provides diversified exposure across market capitalisations, with weights adjusting automatically as market conditions change. This structure allows investors to participate across market cycles without frequent rebalancing or tactical shifts.
The second offering, the DSP Nifty Next 50 ETF, is an open-ended exchange-traded fund that aims to replicate the Nifty Next 50 Index. The index includes companies ranked 51 to 100 by market capitalisation within the Nifty 100 universe and is often seen as a segment representing potential future large-cap companies, though it typically carries higher volatility.
DSP Mutual Fund said both schemes will aim to closely track their respective benchmarks, subject to tracking error, supported by its dedicated passive investment team.
The new fund offer (NFO) for both the DSP Nifty 500 Index Fund and the DSP Nifty Next 50 ETF opens on December 19, 2025, and closes on December 30, 2025.
Commenting on the launches, Anil Ghelani, CFA, Head–Passive Investments & Products at DSP Mutual Fund, said passive strategies are most effective when investors select indices based on the role they play in a portfolio rather than short-term performance. He added that the Nifty 500 offers broad-based market exposure, while the Nifty Next 50 provides access to companies in a growth and transition phase.
DSP Mutual Fund said the new schemes are intended to serve as long-term portfolio building blocks that investors can use alongside actively managed funds, depending on their risk appetite and investment horizon.