- Summary
- DSP Liquid Fund is the largest scheme by AUM among the 10 funds covered, while the list also includes equity, debt, hybrid and thematic options.
- DSP Mid Cap Fund and DSP Small Cap Fund provide exposure to smaller companies and carry Very High risk, while DSP Large & Mid Cap Fund and DSP Flexi Cap Fund offer broader equity exposure.
- DSP ELSS Tax Saver Fund has a three-year lock-in and may qualify for a Section 80C deduction under the old tax regime.
- DSP Multi Asset Allocation Fund invests across equity, debt and commodities and does not yet have a complete three-year record.
Finding the best DSP mutual fund begins with a simple question: what is the money meant for?
DSP has equity funds for long-term growth, debt funds for short-term money and hybrid funds that invest across asset classes. Since these schemes serve different purposes, the largest or highest-returning fund will not necessarily be the right choice for every investor.
The ten schemes below have been ranked by AUM. Direct-growth plans have been used for comparing returns and costs. Data is based on information available in August 2026.
Best 10 DSP Mutual Funds: Quick Comparison
| Fund name | Category and plan | 3Y CAGR | 5Y CAGR | Benchmark | AUM | Expense ratio | Minimum SIP | Risk |
| DSP Liquid Fund | Liquid, Direct-Growth | 7.01% | 6.32% | CRISIL Liquid Debt A-I Index | ₹22,962 crore | 0.10% | ₹100 | Low to Moderate |
| DSP Midcap Fund | Mid Cap, Direct-Growth | 17.06% | 13.78% | Nifty Midcap 150 TRI | ₹20,523 crore | 0.64% | ₹100 | Very High |
| DSP Small Cap Fund | Small Cap, Direct-Growth | 19.61% | 19.74% | BSE 250 SmallCap TRI | ₹20,221 crore | 0.66% | ₹100 | Very High |
| DSP Large & Mid Cap Fund | Large & Mid Cap, Direct-Growth | 15.97% | 13.88% | Nifty LargeMidcap 250 TRI | ₹18,231 crore | 0.53% | ₹100 | Very High |
| DSP ELSS Tax Saver Fund | ELSS, Direct-Growth | 15.50% | 13.73% | Nifty 500 TRI | ₹16,738 crore | 0.65% | ₹500 | Very High |
| DSP Flexi Cap Fund | Flexi Cap, Direct-Growth | 13.78% | 13.73% | NIFTY 500 TRI | ₹12,422 crore | 0.60% | ₹100 | Very High |
| DSP Multi Asset Allocation Fund | Multi Asset, Direct-Growth | NA | NA | Custom multi-asset benchmark | ₹10,592 crore | 0.38% | ₹100 | Very High |
| DSP Money Market Fund | Money Market, Direct-Growth | 7.27% | 6.41% | Nifty Money Market Index A-I | ₹8,704 crore | 0.15% | ₹100 | Low to Moderate |
| DSP Large Cap Fund | Large Cap, Direct-Growth | 12.60% | 10.85% | Nifty 100 TRI | ₹7,228 crore | 0.76% | ₹100 | Very High |
| DSP India T.I.G.E.R. Fund | Thematic Infrastructure, Direct-Growth | 22.82% | 23.55% | BSE India Infrastructure TRI | ₹6,325 crore | 0.73% | ₹100 | Very High |
Top 10 DSP Mutual Funds in India
A place in this list reflects the size of the scheme, not a recommendation to invest. The funds range from short-term debt products to volatile equity strategies. Each one is therefore discussed according to the job it is designed to perform.
1. DSP Liquid Fund Direct Plan-Growth
DSP Liquidity Fund held the largest pool of assets in this group, at ₹22,962 crore. Its portfolio is restricted to debt and money-market securities that mature within 91 days.
Over the three years covered by the data, the fund earned an annualised 7.01%. Its five-year figure was 6.32%. The direct plan charged 0.10%, and an SIP could be opened with ₹100.
Its main use lies in temporarily holding money that may be required soon. The short maturity reduces sensitivity to interest-rate changes, although neither the capital nor the return is assured.
For investors comparing liquid funds, the low expense ratio is a useful feature. The trade-off is that returns are likely to remain modest and move with short-term interest rates.
2. DSP Midcap Fund Direct Plan-Growth
DSP Midcap Fund must keep at least 65% of its portfolio in mid-cap companies. It managed assets worth ₹20,523 crore and had a direct-plan expense ratio of 0.64%.
The scheme delivered annualised returns of 17.06% over three years and 13.78% over five years. Its reported holdings included Coforge, Cholamandalam Investment, Fortis Healthcare, Federal Bank and Bharat Forge.
Mid-cap businesses can offer room for expansion, but their shares may experience large price swings. Investors may need seven years or more to manage the effect of market cycles.
The scheme provides access to growing mid-sized companies. At the same time, its Very High risk rating indicates that prolonged periods of weak performance are possible.
3. DSP Small Cap Fund Direct Plan-Growth
DSP Small Cap Fund invests at least 65% of its assets in small-cap shares. Its AUM was ₹20,221 crore, while the expense ratio was 0.66%.
It returned 19.61% annually over three years and 19.74% over five years. Lumax Auto Technologies, Kirloskar Oil Engines, Thangamayil Jewellery, Sansera Engineering and Shriram Pistons appeared among its larger holdings.
Small-cap companies can grow quickly, but they may also face business, liquidity and governance risks. The scheme is better suited to investors who can remain invested through sharp market declines.
DSP Small Cap Fund offers access to businesses that are still building scale. That opportunity comes with a difficult side: when small-cap sentiment turns, prices can fall sharply and may take years to recover.
4. DSP Large & Mid Cap Fund Direct Plan-Growth
At least 35% of this fund must remain in large-cap shares and another 35% in mid-cap shares. As a result, the portfolio does not rely entirely on either mature market leaders or smaller growth businesses.
The fund managed ₹18,231 crore and charged 0.53% under its direct plan. Its annualised return stood at 15.97% over three years and 13.88% over five years. ICICI Bank, HDFC Bank, Axis Bank, State Bank of India and Kotak Mahindra Bank appeared among its leading holdings.
The large-cap allocation can provide a steadier base, while the mid-cap portion leaves room for faster growth. Investors must still be prepared for the additional volatility created by the compulsory mid-cap exposure.
5. DSP ELSS Tax Saver Fund Direct Plan-Growth
DSP ELSS Tax Saver Fund keeps at least 80% of its portfolio in equities. Every contribution remains locked in for three years, including each individual SIP instalment.
The scheme had ₹16,738 crore in assets and a direct-plan expense ratio of 0.65%. It recorded annualised returns of 15.50% over three years and 13.73% over five years. The minimum SIP was ₹500.
Taxpayers using the old tax regime may include an eligible investment within their Section 80C claim, subject to the overall ₹1.5 lakh limit. This benefit concerns the deduction available at the time of investing. It does not place a floor under the fund’s NAV or remove equity-market risk.
The scheme brings tax planning and equity investing together. In return, investors give up access to each contribution for the full lock-in period.
6. DSP Flexi Cap Fund Direct Plan-Growth
DSP Flexi Cap Fund can invest across large-cap, mid-cap and small-cap companies. The fund manager is not required to maintain a fixed allocation to each group.
Its AUM was ₹12,422 crore, and its expense ratio stood at 0.60%. The fund returned 13.78% annually over three years and 11.67% over five years.
ICICI Bank, HDFC Bank, Axis Bank, Mahindra & Mahindra and State Bank of India featured among its major holdings.
The fund manager can move across large, mid-sized and smaller companies without maintaining a fixed share in each group. This freedom can help when opportunities shift between market segments, but the outcome also depends on whether those allocation and stock-selection decisions prove correct.
7. DSP Multi Asset Allocation Fund Direct Plan-Growth
DSP Multi Asset Allocation Fund does not depend on one kind of investment. It distributes money among equities, debt instruments and commodities, with each asset class generally accounting for at least 10% of the portfolio.
At ₹10,592 crore, it was the seventh-largest scheme in this ranking. Its direct plan carried an expense ratio of 0.38%. Reported investments included DSP Gold ETF and government securities.
The fund opened on 27 September 2023 and was still short of three years when this comparison was prepared. It therefore has no complete three-year or five-year return to report.
Holding three asset classes within the same scheme can make portfolio management more convenient. The limited history, however, gives investors less evidence for judging how the strategy behaves through a full market cycle.
8. DSP Savings Fund Direct Plan-Growth
DSP Savings Fund is a money-market mutual fund, despite the use of “savings” in its name. It invests in instruments with maturities of up to one year.
The scheme’s AUM was ₹8,704 crore, and its expense ratio was 0.15%. It returned 7.27% annually over three years and 6.41% over five years. Investors could start an SIP with ₹100.
This fund may suit money required over a relatively short period. It should not be treated as a bank deposit or used for long-term wealth creation.
The fund’s short maturity and 0.15% expense ratio may be useful for investors comparing money-market schemes. It is still a mutual fund, not a deposit. Its NAV and return can change, and neither is guaranteed.
9. DSP Large Cap Fund Direct Plan-Growth
DSP Large Cap Fund keeps at least 80% of its assets in shares of large companies. In regulatory terms, this usually means businesses placed within the first 100 positions by full market capitalisation.
The scheme managed ₹7,228 crore and charged 0.76% under its direct plan. It produced annualised returns of 12.60% over three years and 10.85% over five years.
Large companies often have established operations and actively traded shares. Even so, an active large-cap scheme has to compete with index funds that offer access to much of the same market at a lower cost.
The portfolio gives investors exposure to recognised businesses across several industries. The concern is whether the fund can earn enough above its benchmark to compensate for active-management expenses.
10. DSP India T.I.G.E.R. Fund Direct Plan-Growth
The full name behind T.I.G.E.R. is The Infrastructure Growth and Economic Reforms Fund. At least 80% of its assets must be invested in companies connected with infrastructure and related economic activity.
The scheme had an AUM of ₹6,325 crore and an expense ratio of 0.73%. Its annualised return reached 22.82% over three years and 23.55% over five years. Reliance Industries, NTPC, Apollo Hospitals, Larsen & Toubro and Hindustan Aeronautics appeared among its prominent holdings.
This fund gives investors a focused way to participate in infrastructure spending and investment. It can also be hit when projects slow, financing becomes expensive or the capital-expenditure cycle weakens. For that reason, it is better viewed as a thematic allocation than as a complete equity portfolio.
How We Selected These DSP Funds
The ranking began with one measurable factor: AUM. DSP’s schemes were arranged from largest to smallest, and the first ten were taken forward for review.
Size alone did not decide the assessment. For each scheme, the review considered what it invests in, the benchmark it follows and how it performed over three and five years. Costs, minimum SIP, Riskometer level and the composition of the portfolio were also checked. A fund’s age mattered because a newly launched scheme cannot offer the same performance history as one that has operated through several market cycles.
This process explains why the list contains very different products. It does not suggest that a large liquid fund is better than a smaller equity fund. Investors who are new to pooled investments can first understand how Mutual Funds work.
DSP Funds vs Other Fund Categories
DSP is an asset management company rather than a mutual-fund category. A DSP scheme should therefore be compared with similar schemes from other fund houses.
| DSP fund type | Suitable comparison | Main purpose | Possible horizon |
| Liquid fund | Other liquid funds | Short-term cash management | Days to a few months |
| Money-market fund | Other money-market funds | Parking short-term money | Around one year |
| Large-cap fund | Large-cap active and index funds | Core equity exposure | Five years or more |
| Flexi-cap fund | Other flexi-cap funds | Diversified equity investing | Five to seven years |
| Mid-cap fund | Other mid-cap funds | Higher-growth equity exposure | Seven years or more |
| Small-cap fund | Other small-cap funds | Aggressive wealth creation | Seven to ten years |
| ELSS | Other ELSS schemes | Tax planning and equity growth | At least three years |
| Multi-asset fund | Other multi-asset funds | Mixed asset allocation | Five years or more |
| Infrastructure fund | Other infrastructure funds | Thematic exposure | Five to seven years |
Comparing DSP Small Cap Fund with DSP Liquidity Fund on returns would provide little useful information. The two funds invest in different assets and are intended for different financial needs.
Benefits and Risks of DSP Mutual Funds
Benefits
Range of fund categories
DSP offers equity, debt and hybrid schemes. Investors can choose a category that reflects the purpose of the investment.
Accessible investment amounts
Most funds in this list allow SIPs from ₹100. DSP ELSS Tax Saver Fund has a minimum SIP of ₹500.
Professional management
The scheme’s appointed fund managers select and monitor securities within its stated investment mandate.
Risks
Market risk
The NAV of an equity or hybrid fund can fall when the value of its investments declines.
Mid-cap and small-cap risk
Shares of smaller companies can be more volatile and may have lower liquidity than large-cap shares.
Concentration risk
DSP India T.I.G.E.R. Fund is tied to the infrastructure theme. Weakness in that part of the economy can affect a large portion of its portfolio.
Debt-market risk
Liquid and money-market funds can be affected by interest-rate changes, issuer credit quality and market liquidity.
Past-performance risk
A fund’s historical returns show what has already happened. They do not establish what investors will earn in the future.
Who Should Consider and Avoid DSP Funds?
DSP’s equity schemes may fit an investor who has a clear long-term goal and can leave the money invested for at least five years. A willingness to remain invested through a falling market matters just as much as the intended holding period. These funds may also appeal to someone who wants a professionally selected portfolio without choosing individual shares.
The liquid and money-market schemes serve a different need. They may be considered for money that is likely to be used sooner and should not face ordinary equity-market swings.
A DSP scheme may be unsuitable when the investor expects a fixed return, needs the full amount shortly or becomes uncomfortable as soon as the NAV falls. Caution is also needed when several funds already own similar shares or when one sector is beginning to occupy too much of the portfolio.
How to Choose a DSP Mutual Fund
Define the financial goal
Clarify whether the investment is intended for an emergency reserve, tax planning, education, a home or retirement.
Match the category with the period
Debt funds may serve shorter requirements. Equity schemes generally need a longer investment period to deal with market declines.
Compare the fund with its benchmark
Review three-year, five-year and rolling performance against the relevant benchmark and category. Avoid comparing unrelated funds.
Check the Riskometer
A Very High risk label means that large changes in the investment’s value are possible. It should not be ignored because the fund has performed well recently.
Review expenses
Compare direct plans with direct plans. Even a small annual cost difference can affect the accumulated amount over several years.
Examine the portfolio
Check the major sectors, market-cap distribution and largest holdings. Investing in several schemes with similar holdings may create duplication.
Review management changes
A change in fund manager does not automatically require redemption. It should lead to a fresh review of the scheme’s strategy and portfolio.
SIP vs Lump Sum for DSP Funds
A SIP invests a fixed amount at regular intervals. Purchases therefore take place at different NAVs instead of depending on one market level.
A lump-sum investment places the complete amount in the fund immediately. This may suit investors with surplus capital and a long horizon, but the initial result is more sensitive to market timing.
| Factor | SIP | Lump sum |
| Investment method | Regular contributions | One-time contribution |
| Entry point | Spread across different dates | Concentrated on one date |
| Suitable for | Monthly income and disciplined investing | Available surplus |
| Main limitation | Does not prevent market losses | Greater entry-point risk |
| Common use | Long-term goal investing | Planned asset allocation |
For volatile mid-cap, small-cap and thematic schemes, an SIP may make regular investing easier. It does not guarantee positive returns.
Direct vs Regular DSP Funds
Direct and regular plans invest in the same underlying portfolio. Their distribution arrangement and expenses differ.
| Feature | Direct plan | Regular plan |
| Distributor | Not involved | Involved |
| Expense ratio | Generally lower | Generally higher |
| NAV | Separate direct-plan NAV | Separate regular-plan NAV |
| Assistance | Investor manages the selection | Distributor may provide support |
| Suitable for | Independent investors | Investors seeking distribution assistance |
A direct plan can reduce costs, but investors must be able to select, review and rebalance their investments without relying on a distributor.
Taxation of DSP Mutual Funds
Tax treatment depends on the scheme’s classification rather than the name of the fund house.
Equity-oriented DSP funds
DSP Midcap Fund, DSP Small Cap Fund, DSP Large & Mid Cap Fund, DSP ELSS Tax Saver Fund, DSP Flexi Cap Fund, DSP Large Cap Fund and DSP India T.I.G.E.R. Fund are equity-oriented schemes.
- Gains from units sold within 12 months are generally treated as short-term capital gains and taxed at 20%.
- Gains from units sold after 12 months are generally treated as long-term capital gains.
- Long-term equity gains exceeding the applicable ₹1.25 lakh annual threshold are taxed at 12.5%.
Applicable surcharge and cess may increase the final tax liability.
Debt-oriented DSP funds
For specified debt-oriented mutual-fund units purchased on or after 1 April 2023, the gain is generally added to the investor’s taxable income and taxed at the applicable slab rate.
This treatment is relevant to funds such as DSP Liquidity Fund and DSP Savings Fund.
DSP Multi Asset Allocation Fund
The scheme is currently classified as a non-equity-oriented fund other than a specified mutual fund. Units held for more than 24 months are treated as long-term capital assets and taxed at 12.5%, while gains on units held for 24 months or less are taxed at the investor’s applicable rate.
DSP ELSS Tax Saver Fund
An eligible investment may qualify for a Section 80C deduction within the overall ₹1.5 lakh limit when the investor follows the old tax regime. The deduction is generally unavailable under the new tax regime.
Tax rules can change. The applicable provisions should be checked for the financial year in which units are redeemed.
Other Best Mutual Fund Categories
FAQs
Based on the five-year annualised returns available in August 2026, five leading schemes from this list were:
DSP India T.I.G.E.R. Fund: 23.55%
DSP Small Cap Fund: 19.74%
DSP Large & Mid Cap Fund: 13.88%
DSP Midcap Fund: 13.78%
DSP ELSS Tax Saver Fund: 13.73%
These schemes belong to different categories. Their return ranking should not be used as a standalone recommendation.
A DSP fund may be considered if its category, portfolio and risk match the investor’s goal. The decision should not be based only on recent returns or the current market level.
DSP India T.I.G.E.R. Fund had the highest five-year annualised return among the ten AUM-ranked schemes covered here. It returned 23.55% annually over that period. However, it is an infrastructure-themed fund and carries concentration risk.
Start with the goal and investment horizon. Compare schemes within the relevant category using benchmark performance, rolling returns, expense ratio, risk, portfolio concentration and fund-management consistency.
Most DSP funds in this list accept an SIP starting at ₹100. DSP ELSS Tax Saver Fund requires a minimum SIP of ₹500. Minimum investment rules may change.
DSP mutual funds operate under India’s mutual-fund regulations, but they are not risk-free. Equity funds can lose value, while debt funds carry interest-rate, credit and liquidity risks.
