DSP Mutual Fund has rolled out four new passive investment schemes aimed at providing structured exposure to India’s midcap and small-cap segments. These schemes replicate the Nifty Midcap 150 and Nifty Smallcap 250 indices, which cover companies ranked 101–250 and 251–500, respectively.
Anil Ghelani, Head of Passive Investments & Products at DSP Mutual Fund, said the offerings are designed to help investors tap midcap and small-cap opportunities through rule-based index tracking.
How the Indices Have Performed
As per data available on October 31, 2025:
- Nifty Midcap 150 TRI delivered an average 10-year rolling return of 16.2%, outperforming the Nifty 500 TRI at 12.6%.
- Nifty Smallcap 250 TRI recorded 13.5% over the same period.
DSP MF cautioned that past index performance is not an indicator of future results.
Index Coverage and Market Focus
- Nifty Midcap 150 focuses on relatively stable, mid-sized companies.
- Nifty Smallcap 250 spans sectors such as capital markets, industrial products, building materials, textiles, and healthcare equipment.
Although small-cap and midcap indices typically experience deeper drawdowns compared to broader market benchmarks, long-term holding periods have historically improved return outcomes. These new schemes can serve as complementary allocations for investors looking to diversify across a wider equity spectrum.
Low Overlap With Active Funds
According to DSP MF:
- The Midcap 150 index has a 32% overlap with active midcap funds.
- The Smallcap 250 index has just 18% overlap with active small-cap funds.
This limited overlap offers more differentiated exposure for investors combining passive and active strategies.
Disclaimer
This article is for informational purposes only. It should not be considered investment advice. Mutual fund investments are subject to market risks. Readers should consult a qualified financial advisor before making any investment decisions.
