DSP Mutual Fund has unveiled the DSP Nifty500 Flexicap Quality 30 Index Fund, India’s first flexicap index fund aimed at delivering long-term, resilient returns through a unique combination of quality stock selection and dynamic market cap allocation.
The fund will replicate the Nifty500 Flexicap Quality 30 Index, which identifies 30 fundamentally strong companies across large, mid, and small-cap segments, 10 from each, based on strict quality filters like high return on equity (ROE), low debt levels, and consistent earnings growth. Each stock within a segment is equally weighted, ensuring balanced exposure.
What sets this fund apart is its flexicap momentum strategy. Allocation to large caps vs. small and midcaps (SMID) is adjusted quarterly based on a rule-based signal-comparing the SMID-to-large-cap ratio to its 200-day moving average. Depending on the signal, the allocation toggles between 67%-33% in favor of either SMID or large caps, enhancing the fund’s responsiveness to market trends.
Since October 2009, the underlying index has delivered a CAGR of 18.1%, outperforming the Nifty 500 TRI’s 13.0% over the same period. In volatile markets, its quality-driven approach has also shown strong downside protection. Notably, the index has achieved median SIP returns of 20.3% over rolling 5-year periods, versus 15.8% for the broader Nifty 500 TRI.
“This fund is built on simple principles-invest in high-quality businesses, and let the system dynamically guide allocations,” said Kalpen Parekh, MD & CEO, DSP Mutual Fund. “We prefer to launch strategies when they’re undervalued or out of favor. The quality factor is undergoing a correction, making this the right time.”
Anil Ghelani, CFA, Head – Passive Investments & Products, emphasized that the fund offers the best of both worlds: “It marries dynamic flexicap allocation with disciplined quality stock picking. The rules-based passive structure helps reduce investor anxiety and avoid unnecessary churn.”
Sahil Kapoor, Market Strategist at DSP, added: “Investors often struggle with market timing and allocation. This strategy automates that decision-making, bringing both agility and resilience.”
With zero active intervention, low cost, tax-efficient rebalancing, and no exit loads, this fund aims to remove the complexity typically associated with flexicap investing. DSP continues to focus on innovation that empowers investors with simple, transparent, and long-term strategies.
Jio BlackRock’s flexi-cap fund
Jio BlackRock Asset Management is set to enter the active mutual fund space with the proposed Jio BlackRock Flexi Cap Fund, which may become the 41st scheme in India’s flexi-cap category – currently led by Parag Parikh and HDFC Flexi Cap Funds, managing a combined AUM of over ₹1.9 lakh crore.
After launching five passive index funds, this marks Jio BlackRock AMC’s first active equity fund, with the draft scheme filed recently with SEBI. The Flexi Cap Fund will invest across large-cap, mid-cap, and small-cap stocks within the Nifty 500 universe, aiming for long-term capital appreciation. Notably, it will leverage BlackRock’s Aladdin technology for portfolio construction.
According to the draft, the fund will allocate 65-100% to equities, up to 35% in debt and money market instruments, and up to 10% in REITs and InvITs. It will not invest in overseas securities.
The scheme will offer a direct plan with a growth option (more options may be added later) and no exit load. Minimum investment during the NFO is ₹500. The fund will be benchmarked to the Nifty 500 Index TRI, with NFO dates to be announced post regulatory approval.