What Is DSP Mutual Fund?

India’s mutual fund industry has grown tremendously, growing from ₹27.49 trillion as on Aug 2020 to ₹76.71 trillion in assets under management (AUM) by August 2025. Among the asset management companies shaping this growth, sits DSP Mutual Fund- a well-known name with over 25 years of experience. Once linked with DSP Merrill Lynch and now fully Indian-owned, the company offers a wide range of equity, debt, and passive funds. So, what is DSP mutual fund? In this blog, we’ll look at its journey, products, and innovations in the industry.

What Is DSP Mutual Fund?

DSP Mutual Fund is an open-ended equity scheme investing across equity, debt, and hybrid categories to support long-term growth. DSP Mutual Fund ranks among India’s well-recognised asset managers, carrying a heritage of close to three decades. Managed by DSP Asset Managers and sponsored by the DSP Group, it offers investment options across equity, debt, hybrid, and international fund-of-funds. The fund house serves over 50 lakh investors and is recognised for its research-driven approach, long-term focus, and adherence to responsible investment practices, making it an important player in the Indian mutual funds industry.

Overview of DSP Asset Managers 

DSP Asset Managers are a significant part of India’s mutual fund industry. Let’s check out their main details below:

Particulars	Details
Name of the mutual fund	DSP Mutual Fund
Date of set-up	16-Dec-1996
Sponsor(s)	DSP HMK Holdings Pvt. Ltd & DSP Adiko Holdings Pvt. Ltd
Trustee company	DSP Trustee Private Limited
Asset management company	DSP Asset Managers Private Limited
Date of AMC incorporation	17-Jun-2021
Chairman	Ms. Aditi Kothari Desai
Managing director & CEO	Mr. Kalpen Parekh
Address of AMC	The Ruby, 25th Floor, 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400028
Website	www.dspim.com
Email	[email protected]
Custodian	Citibank N.A.
Registrar & transfer agent	Computer Age Management Services (CAMS)
Assets under management (AUM)	₹2,09,914.15 Crore
Total number of mutual fund schemes	60

History & Background 

DSP’s legacy traces back over 160 years, beginning in 1860 when they entered the financial sector. By 1877, they were among the founding members of India’s first stock exchange, then called The Native Share & Stock Brokers Association. Over the decades, the DSP Group expanded its role, from setting up charitable trusts in 1953 to pioneering investment banking and international collaborations in the 1970s and 80s. 

A core milestone came in 1996 with the launch of DSP Merrill Lynch Asset Management, followed by the DSP BlackRock partnership in 2008. In 2018, the DSP Group regained full ownership, rebranding as DSP Mutual Fund. Most recently, in 2023, DSP Asset Managers was formed after a demerger. Today, the company continues its #InvestForGood philosophy, blending heritage with modern investment practices to serve millions of investors across India.

Types of Mutual Fund Schemes Offered 

DSP Mutual Fund offers a total of 60 unique schemes designed to meet different investor needs and financial goals. The schemes are categorised under: :

1. Equity Funds

DSP offers 27 equity plans that largely focus on shares to build long-term capital appreciation. These include large-cap funds for established companies, mid-cap funds targeting businesses with growth potential, small-cap funds focused on emerging firms, and multi/flexi-cap funds that allow managers to invest across market capitalizations based on research and prevailing market conditions. A few of these plans include the DSP Nifty Next 50 Index Fund, DSP Value Fund, DSP Mid Cap Fund, and more 

2. Debt Funds

It also offers 17 debt funds created for investors preferring consistent gains with reduced exposure.
These products channel money into assets like sovereign bonds, corporate debt, and cash market instruments. Choices extend to liquid funds for immediate requirements and dynamic bond funds, where maturity duration shifts based on interest rate movements. DSP’s primary debt schemes are DSP Floater Fund, DSP Banking & PSU Debt Fund, etc. 

3. Hybrid Funds

DSP provides 6 hybrid funds investing in both shares and debt categories. These offerings combine wealth opportunities with risk protection.Aggressive hybrid funds allocate more to equity, while conservative hybrid funds have a higher proportion of debt, catering to investors with different risk appetites. Popular options include DSP Multi Asset Allocation Fund, DSP Regular Savings Fund, DSP Aggressive Hybrid Fund (earlier DSP Equity & Bond Fund), and more.

4. Index, Sectoral & ELSS Funds

The fund house provides 15 index funds, 3 sectoral funds, and 1 ELSS tax saver fund. Index funds replicate market indices like Nifty 50, sectoral funds focus on specific industries such as technology or healthcare, and the ELSS scheme combines equity growth potential with tax benefits under Section 80C. The DSP primary index fund schemes are DSP Nifty DSP Nifty 50 Index Fund and DSP BSE Sensex Next 30 Index Fund and more.

Key Strengths & Benefits 

DSP Mutual Fund combines experience, research, and investor-focused practices to offer distinct advantages. Its core benefits consist of:

• Foundation of trust and experience: With nearly 30 years in asset management and a financial legacy of over 160 years, DSP Mutual Fund has built credibility and earned the trust of over 80,000 mutual fund distributors and advisors.
• Widespread presence and expert management: DSP operates in more than 40 cities across India, making its schemes accessible nationwide. Its portfolio of 60+ schemes is managed by 19 fund managers specialising in equity, fixed income, ETFs, and index funds, ensuring professional oversight for each investment type.
• Comprehensive investment tools: DSP provides over a dozen online calculators for detailed financial planning, including STP Calculator, SWP Calculator, and Compounding Calculator, allowing investors to model financial scenarios and plan effectively.
• Diverse product portfolio: DSP offers 60+ schemes across equity, debt, hybrid, and passive categories, enabling investors to construct a diversified portfolio aligned with their risk tolerance and financial objectives.

Performance & Popular Funds 

To understand DSP’s ability to manage its wide range of mutual fund schemes, here’s a look at its key financial figures over the last two fiscal years.

Particulars	FY 2024-25 (₹ in million)	FY 2023-24 (₹ in million)
Income	9,827.02	8,285.45
Profit before tax	5,052.04	4,052.23
Profit after tax	3,961.05	3,100.69

This financial strength supports several open-ended and 4 closed-ended schemes.

As far as DSP’s widely preferred mutual funds are concerned, the following table presents the most popular equity schemes by AUM along with their 1-, 3-, and 5-year returns:.

Fund name	Category	AUM (₹ Cr as of Mar 31, 2025)	1Y return (%)	3Y return (%) (p.a.)	5Y return (%) (p.a.)
DSP Midcap Fund	Equity: Mid Cap	17,203.61	55.48%	30.01%	29.35%
DSP ELSS Tax Saver Fund	Equity: ELSS	16,218.35	40.97%	22.84%	21.43%
DSP Small Cap Fund	Equity: Small Cap	14,269.13	53.07%	31.98%	32.12%
DSP Large & Mid Cap Fund	Equity: Large & Mid Cap	13,784.81	46.12%	22.87%	22.46%
DSP Flexi Cap Fund	Equity: Flexi Cap	11,154.18	40.52%	21.60%	20.91%

Cost & Accessibility Features 

DSP Mutual Fund maintains transparency in costs and ensures easy access for investors, as follows:

1. Expense ratios

The main cost for an investor is the Total Expense Ratio (TER), which covers fund management and operational charges. This ratio varies by scheme and plan type (Direct or Regular). For example, the TER for the DSP Flexi Cap Fund (Direct Plan) was 0.77% as of June 2025.

2. Exit loads

To encourage long-term investing, some schemes may have an exit load. For example, the DSP Midcap Fund applies a 1% exit load if redemptions exceed 10% of holdings within the first year of allotment.

3. Accessibility

The funds are highly accessible with a minimum investment amount of just ₹100 for both lumpsum and Systematic Investment Plans (SIPs) in most schemes, making it easy for retail investors to start their investment journey.

4. Transparency and governance

Investor interests are protected through several board-level committees, including an Audit Committee, a Risk Management Committee, and a Unit Holder Protection Committee. A robust Whistle Blower Policy is also in place to ensure high ethical standards.

5. Investor services

All investor-related services, such as transactions and account statements, are efficiently handled by the company’s official Registrar and Transfer Agent, KFin Technologies Private Limited.

Recent Innovations & Updates 

DSP Mutual Fund has recently introduced several key developments to enhance investor experience and expand opportunities, including:

1. Product diversification: Launch of thematic and sectoral funds like the DSP World Agriculture Fund, catering to evolving investor interests.
2. Digital enhancements: Advanced tools such as ‘Netra’ for economic insights, ‘The Transcript’ for business analysis, and ‘The Navigator’ for asset-allocation strategy integrated into user-friendly platforms.
3. Scheme renaming & benchmark updates: DSP Mutual Fund has renamed seven schemes as per SEBI’s Standardized Framework for Fund of Fund (FoF) schemes from August 31, 2025, including international and debt-oriented passive funds, enhancing transparency and benchmark alignment.
4. Sector-based & global funds: DSP Nifty Healthcare and IT Index Funds offer low-cost exposure to key sectors, while DSP Global Innovation Overseas Equity Omni FoF continues to attract significant AUM.

Conclusion

DSP Mutual Fund stands as a long-established asset manager that combines nearly three decades of expertise with a forward-looking approach. Its wide product range, digital resources, and focus on responsible investing position it as an important part of India’s growing mutual fund landscape. Knowing what is DSP Mutual Fund offers insight into how a heritage-driven company adapts to modern investment needs.

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