DSP Mutual Fund launches four new passive funds targeting India’s midcap and smallcap growth

DSP Mutual Fund on Monday launched four new passive investment schemes—the DSP Nifty Midcap 150 Index Fund, DSP Nifty Midcap 150 ETF, DSP Nifty Smallcap 250 Index Fund and DSP Nifty Smallcap 250 ETF—expanding its low-cost passive offerings aimed at India’s fast-growing midcap and smallcap segments. The funds track two widely followed, rules-based indices that together cover India’s 101st to 500th largest companies, representing the country’s broadest corporate base.

According to DSP, the Nifty Midcap 150 and Nifty Smallcap 250 indices have historically outperformed the broader market over long periods. As of October 31, 2025, the Midcap 150 TRI delivered average 10-year rolling returns of 16.2%, while the Smallcap 250 TRI generated 13.5%, both higher than the Nifty 500 TRI’s 12.6%. The fund house added that while the indices may see deeper drawdowns, longer holding periods improve the probability of positive returns.

In Guwahati, analysts say investors in the region have shown rising interest in passive products amid growing awareness of diversification. With midcap and smallcap stocks gaining traction among younger investors in Assam, DSP’s new schemes are expected to draw attention from financial distributors across major Guwahati trading hubs. DSP said the indices also offer low overlap with active funds, making them useful diversification tools. “These products offer investors a simplified way to participate in broad-based market expansion,” said Anil Ghelani, Head – Passive Investments at DSP. The NFOs will remain open until December 8, 2025.