Archive · 25 Nov 2025
DSP Mutual Fund Launches Passive Schemes
DSP Mutual Fund has introduced four new investment options that follow specific stock market indices, focusing on medium-sized and smaller companies in India.
These indices, the Nifty Midcap 150 and Nifty Smallcap 250, have shown good returns over the past 10 years.
The new schemes offer a different way to invest, with low overlap with other actively managed funds.
Meanwhile, Angel One AMC discusses the shift towards passive investing in India, highlighting the benefits of transparency, lower costs, and rule-based approaches.
They believe that India is on a similar trajectory to the US, where passive investing is gaining prominence.
The debate between passive and active investing continues, with each side presenting its advantages.
DSP Mutual Fund launched four new passive schemes tracking India's midcap and small-cap segments.
The schemes track the Nifty Midcap 150 and Nifty Smallcap 250 indices, which have shown strong returns over the past 10 years.
The Nifty Midcap 150 TRI had a 10-year rolling return of 16.2%, higher than the Nifty 500 TRI's 12.6%.
The Nifty Smallcap 250 TRI returned 13.5% over the same period, indicating strong performance in the small-cap segment.
The new schemes offer differentiated exposure with low overlap with active fund portfolios, providing investors with a unique investment option.
- Who
- DSP Mutual Fund and Angel One AMC
- What
- Launched four new passive investment schemes and discussed the shift towards passive investing in India
- When
- Not specified
- Where
- India
- Why
- To provide structured access to midcap and small-cap market segments through index tracking and to capitalize on the growing trend of passive investing
Passive Investing Advocates
Active Investing Advocates
Investment Strategy
Passive Investing Advocates
Passive investing offers transparency, lower costs, and rule-based approaches, making it an attractive option for investors.
Active Investing Advocates
Active investing allows for potential alpha generation through skilled management and market timing, which can outperform passive strategies in certain conditions.
Market Efficiency
Passive Investing Advocates
As markets become more informationally efficient, it becomes increasingly difficult for active managers to consistently outperform the market, favoring passive strategies.
Active Investing Advocates
Active managers argue that market inefficiencies and opportunities for alpha generation still exist, especially in emerging markets like India.
Investor Preference
Passive Investing Advocates
Investors are increasingly prioritizing simplicity, transparency, and lower costs, driving the growth of passive products.
Active Investing Advocates
Some investors prefer active management for its potential to deliver higher returns and adapt to changing market conditions.
- Fund House
- DSP Mutual Fund
- New Schemes
- Four passive schemes
- Indices Tracked
- Nifty Midcap 150 and Nifty Smallcap 250
- 10-Year Rolling Return (Nifty Midcap 150 TRI)
- 16.2%
- 10-Year Rolling Return (Nifty Smallcap 250 TRI)
- 13.5%
- Overlap with Active Midcap Funds (Midcap 150)
- 32%
- Overlap with Active Smallcap Funds (Smallcap 250)
- 18%
- Passive AUM Growth (2015-2025)
- From Rs 14,000 crore to Rs 13 lakh crore
- Passive AUM Share (2015-2025)
- From 1.3% to 16.7%
