DSP Mutual Fund Gets SEBI Nod for Launch of Nifty500 Flexicap Quality 30 ETF

Mumbai, August 29, 2025 — DSP Mutual Fund received clearance from the Securities and Exchange Board of India (SEBI) to introduce its DSP Nifty500 Flexicap Quality 30 ETF, a continuous offer exchange-traded fund tracking the Nifty500 Flexicap Quality 30 Index.

The new fund offering (NFO) will allot units at ₹10 per unit at a premium tied to the underlying index on the allotment date. The ETF will seek long-term capital appreciation through investments in equity and equity-related securities that comprise the Nifty500 Flexicap Quality 30 Index, within the framework of tracking error.

Key Features of the Scheme

DSP Mutual Fund launched the DSP Nifty500 Flexicap Quality 30 ETF, an exchange-traded fund that is intended to replicate the performance of Nifty500 Flexicap Quality 30 TRI. The scheme’s objective is to provide returns corresponding to the index, subject to tracking error. It would be trading on NSE and BSE with a face value of ₹10 per unit and an allotment price fixed at 1/1000th of the index value on the date of allotment. Investors would be able to invest in the New Fund Offer (NFO) with a minimum amount of ₹5,000 and in multiples of Re 1 subsequently, whereas the creation unit size has been fixed at 1,50,000 units. The fund has no exit load and has fixed a minimum target size of ₹5 crore for the launch.

Fund Management and Strategy

The scheme will be co-managed by Mr. Anil Ghelani and Mr. Diipesh Shah, experienced professionals with over 25 years and 23 years of experience respectively in passive investing and equity markets.

The ETF will track the index by investing in 30 high-quality companies across large, mid, and small-cap segments, and rebalancing periodically. It shall also use derivatives to achieve efficient rebalancing and tracking error reduction.

Index Composition

The Nifty500 Flexicap Quality 30 Index is designed to pick 10 quality stocks from each of the Nifty100, Nifty Midcap150, and Nifty Smallcap250 indices. As of June 30, 2025, the portfolio comprises market-leading firms like Hindustan Unilever, HDFC Bank, Infosys, ITC, Asian Paints, Cummins India, Colgate Palmolive, CDSL, CAMS, Angel One, and Dixon Technologies.

Subscription and Liquidity

• NFO Period: Shall be kept open at least for 3 working days or up to 15 days.
• Trading: Units will be saleable and purchasable on NSE and BSE just like any other listed stock.
• Liquidity: Two-way quotes will be offered by market makers to ensure liquidity.
• Direct Redemption: Investors with transactions of ₹25 crore and above, or in specific situations such as persistent market discount, may approach the AMC directly for redemption.

Trustee Approval

The DSP Mutual Fund trustees approved the scheme on July 25, 2025, with it being a new product and not a small change to an existing fund.

REF: https://www.sebi.gov.in/filings/mutual-funds/aug-2025/dsp-nifty500-flexicap-quality-30-etf_96352.html

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