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DSP Mutual Fund Launches MSCI India ETF for Tax-Efficient India Exposure
10 Nov
Summary
- DSP Mutual Fund launches open-ended MSCI India ETF
- ETF offers diversified exposure to India's large and mid-cap companies
- MSCI India Index has delivered 14% CAGR over 27 years
On November 10, 2025, DSP Mutual Fund 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) period for the DSP MSCI India ETF was open for subscription and closed on November 17.
The ETF offers investors an opportunity to gain diversified exposure to 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, reflecting the changing structure of the country's economy.
Over the long term, the MSCI India Index has delivered a 14% compound annual growth rate (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 for investors, both domestic and international, to access India's growth story, as dividends received and portfolio rebalancing within the fund are not subject to immediate taxation in the country.
The launch of the DSP MSCI India ETF comes at a time when foreign institutional ownership in Indian equities has moderated significantly since late 2021, with outflows of approximately ₹1.4 trillion. As global sentiment towards India improves, a potential reversal in foreign institutional investor (FII) flows could particularly benefit MSCI India Index constituents, making this an opportune time for investors to participate through the new ETF.
