The DSP Nifty Smallcap250 Quality 50 Index Fund is introduced by DSP Mutual Fund.

The DSP Mutual Fund has announced the launch of the first-ever “Quality-Focused” Smallcap Fund, the DSP Nifty Smallcap250 Quality 50 Index Fund (DSP NSQ50IF), an open-ended scheme that tracks the Nifty Smallcap250 Quality 50 Index. The index uses stock selection and exclusion criteria to select 50 stocks that meet the criteria from a universe of 250 stocks.

Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Mutual Fund, said, “We recommend investors to invest in DSP NSQ50IF for the long term via the SIP route for a better experience across market cycles. Smallcaps have the potential for outsize returns when held for the long term, but 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.