NFO Update: DSP Mutual Fund launches MSCI India ETF

DSP Mutual Fund today announced the launch of the DSP MSCI India ETF, an open-ended exchange-traded fund that seeks to replicate the performance of the MSCI India Index (TRI).

The New Fund Offer (NFO) of DSP MSCI India ETF is open for subscription and will close on November 19.

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The ETF offers investors an opportunity to participate in India’s large and mid-cap companies through a globally tracked and time-tested benchmark.

The MSCI India Index, part of MSCI’s Global Investable Market Indexes (GIMI) framework, represents a diversified portfolio of Indian equities across key sectors that capture the changing structure of India’s economy—from industrial-led growth in the 1990s to today’s services-driven landscape. The index currently covers a broad universe of large and mid-cap stocks, reflecting the depth and evolution of the Indian market, according to a press release by the fund house.

Over the long term, the MSCI India Index has delivered a 14% CAGR over the past 27 years, highlighting its ability to capture India’s growth potential while maintaining resilience across market cycles.

The DSP MSCI India ETF provides a tax-efficient route to access India’s growth story. Unlike overseas-listed ETFs, dividends received and portfolio rebalancing within the fund are not subject to immediate taxation in India. This structure enhances potential post-tax returns, especially for NRI and offshore investors seeking exposure to Indian equities through a locally domiciled vehicle.

The MSCI India Index’s diversified composition also ensures lower concentration risk compared to narrower benchmarks like the Nifty 50, while maintaining strong representation of India’s key sectors and high-quality businesses.

The launch comes at a time when foreign institutional ownership in Indian equities has moderated significantly since late 2021, with outflows of approximately Rs 1.4 trillion. As global sentiment towards India improves, a potential reversal in FII flows could particularly benefit MSCI India Index constituents—making this an opportune time for investors to participate through the DSP MSCI India ETF.

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“The MSCI India Index has long been a preferred benchmark for global investors to participate in India’s growth story. With the DSP MSCI India ETF, we aim to make this opportunity easily accessible to investors in India and abroad. This ETF allows them to gain diversified exposure to India’s large and mid-cap companies through a globally recognized, transparent, and disciplined index methodology. We believe this product will serve investors seeking efficient participation in India’s long-term economic expansion,” said Anil Ghelani, CFA – Head – Passive Investments & Products at DSP Mutual Fund.

The MSCI India Index offers a robust representation of India’s evolving economy, with a balance across financials, technology, energy, and consumer sectors. Over time, it has demonstrated consistent performance with relatively stable drawdowns compared to broader benchmarks. Through the DSP MSCI India ETF, investors can now capture this growth potential efficiently and with the added benefit of local tax advantages,” said Gurjeet Kalra, Business Head – Passive Investments, DSP Mutual Fund.