The new fund offer (NFO) opened on June 9 and will close on June 16.
The ETF is designed to provide investors exposure to companies ranked between 251 and 500 by market capitalisation within the broader Nifty 500 universe. The Nifty Smallcap 250 Index comprises 250 stocks across multiple sectors, including financial services, healthcare, information technology, capital goods and automotive components.
According to the fund house, the index offers diversified exposure to India’s small-cap segment, which has expanded in recent years alongside the broader equity market.
Data shared by the asset management company showed that the market capitalisation of the Nifty Smallcap segment increased from about ₹12 lakh crore in 2018 to nearly ₹50 lakh crore in 2025, outpacing the growth of the broader Nifty 500 universe over the same period.
The fund house also noted that the Nifty Smallcap 250 Total Returns Index (TRI) has historically delivered higher returns than the Nifty 500 TRI over the long term, although it has experienced greater volatility during market cycles.
As of May 31, 2026, the Nifty Smallcap 250 Index was trading at a price-to-earnings (P/E) ratio of 33.7 times, compared with its five-year average of 26.3 times. Its price-to-book (P/B) ratio stood at 3.6 times, broadly in line with historical averages, according to the AMC.
The scheme will be benchmarked against the Nifty Smallcap 250 TRI. It will be managed by Nishit Patel, Ashwini Bharucha and Venus Ahuja.
The minimum investment amount during the NFO period is ₹1,000 and thereafter units can be bought and sold on stock exchanges in lots of one unit. The scheme does not carry an exit load.
Exchange-traded funds have gained traction among investors in recent years as a low-cost avenue to gain exposure to market indices through passive investment strategies.
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First Published: Jun 10, 2026 7:56 AM IST
