Nifty Midcap 150 Index represents 150 companies based on full market capitalization from the Nifty 500 Index.
Navi Mutual Fund has launched its Navi Nifty Midcap 150 Index Fund, an equity scheme that will replicate the Nifty Midcap 150 Index and provide investors an opportunity to invest in a fund that represents the emerging companies of the country.
According to the fund house, the fund will have a total expense ratio (TER) of 0.12 per cent for the direct plan, which is the lowest cost compared to any other index funds in the category.
The NFO is already open and will close on 2 March 2022. Investors can invest through online platforms like Groww, PaytmMoney, Zerodha Coin, INDMoney and more or by contacting their nearest distributors.
Navi Nifty Midcap 150 Index Fund will replicate the Nifty Midcap 150 Index. Nifty Midcap 150 Index represents 150 companies (companies ranked 101-250) based on full market capitalization from the Nifty 500 Index
The Nifty Midcap 150 Index has outperformed the Nifty 100 Index in 10 of the last 16 calendar years from CY 2005-20. The Nifty Midcap 150 Index has delivered varied returns over different time horizons. Its 1 year, 5 year and 10-year CAGR are 46.1%, 18.7% and 19.6 % respectively.
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.
What to do: Investors with exposure to large cap stocks can consider investing in mid cap companies to diversify their portfolio. Those who want to have an exposure to the emerging companies of the country through an exposure to large cap indices like Nifty 50 Index and want to diversify their portfolio by allocating funds in a way so as to mirror returns of Nifty Midcap 150 TRI at a low cost, this fund may be looked at.