DSP Mutual Fund launches DSP Nifty Smallcap250 Quality 50 Index Fund

DSP Mutual Fund announced the launch of the first-ever ‘Quality-Focused’ Smallcap Fund DSP Nifty Smallcap250 Quality 50 Index Fund (DSP NSQ50IF), an open-ended scheme tracking Nifty Smallcap250 Quality 50 Index. Out of the 250 stocks in the Nifty Smallcap250 universe, the index applies exclusion criteria and stock selection criteria to filter out companies that do not make the cut and choose 50 stocks that fit the criteria.

“Smallcaps have the potential for outsize returns when held for the long term. However, the space is inherently vast, relatively less studied, and poses a challenge to investors to find quality companies among small caps. Our passive offering aims to reduce the risk of capital loss by choosing ‘Quality’ companies with better fundamentals to keep wealth destroyers away to a great extent. We recommend investors to invest in DSP NSQ50IF for the long term via the SIP route for a better experience across market cycles,” said Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund.