Investors with exposure to large-cap stocks can consider investing in mid-cap companies to diversify their portfolio.
Navi Mutual Fund has launched Navi Nifty Midcap 150 Index Fund, an equity scheme that will replicate the Nifty Midcap 150 Index. NFO is already open and will close on 2 March 2022.
The MF company claims that this fund will provide investors with an opportunity to invest in a fund that represents the emerging companies of the country. The fund will have a TER of 0.12 per cent for the direct plan – the lowest cost compared to any other index funds in the category. As an investor, you can invest through various online platforms like PaytmMoney, Groww, INDMoney, Zerodha Coin, and more or through the company’s nearest distributors.
Navi Nifty Midcap 150 Index Fund (NNM) will seek to replicate the Nifty Midcap 150 Index, which comprises 150 companies (ranked 101-250) based on full market capitalization from the Nifty 500 Index. The Nifty Midcap 150 Index has delivered good returns over varied time horizons. Its 1 year, 5 years and 10-year CAGR are 46.1 per cent, 18.7 per cent and 19.6 per cent respectively. The company says, investors with exposure to large-cap stocks can consider investing in mid-cap companies to diversify their portfolio.
“The Nifty Midcap 150 Index has outperformed the Nifty 100 Index in 10 of the last 16 calendar years from CY 2005-20. Navi’s new fund gives investors the opportunity to participate in the growth stage of mid-cap companies, at an extremely affordable cost,” says a Navi spokesperson.
This is the fourth fund launched by Navi Mutual Fund this year, continuing its focus on passively managed schemes. It launched the Navi Nifty Next 50 Index Fund and Navi Nifty Bank Index Fund in January, and the Navi US Total Stock Market Fund of Fund in February, which is currently the only fund in India providing exposure to Vanguard. Navi plans to launch 3 more funds by the end of March this year.
Key features of the fund;
- Navi Nifty Midcap 150 Index Fund will replicate Nifty Midcap 150 Index
- The fund has an expense ratio of 0.12 per cent for the direct plan, which is the lowest in the category
- NFO is already open and will close on 2 March 2022