Navi Mutual Fund Launches Nifty Midcap 150 Index Fund

Navi Mutual Fund has launched its Navi Nifty Midcap 150 Index Fund, an equity program that will replicate the Nifty Midcap 150 Index. According to the fund house, the program will offer investors the opportunity to invest in a fund that represents companies emerging in the country.

The fund will have a TER of 0.12% for the direct plan, which is the lowest cost compared to all other index funds in the category, the fund house says.

The NFO is currently open and will close for subscription on March 2.

Navi Nifty Midcap 150 Index Fund (NNM) will seek to track the Nifty Midcap 150 Index, which comprises 150 companies (ranked 101-250) based on the full market capitalization of the Nifty 500 Index.

The Nifty Midcap 150 Index has generated attractive returns over a variety of time horizons. Its 1-year, 5-year, and 10-year CAGRs are 46.1%, 18.7%, and 19.6%, respectively. Investors with exposure to large-cap stocks may consider investing in mid-cap companies to diversify their portfolio, the fund house explains.

According to a Navi spokesperson, “The Nifty Midcap 150 Index has outperformed the Nifty 100 Index in 10 of the past 16 calendar years from CY 2005-20. Navi’s new fund offers investors the opportunity to participate in the growth phase of mid-cap companies, at an extremely affordable cost.”

This is the fourth fund launched by Navi Mutual Fund this year, continuing its focus on passively managed plans. It launched Navi Nifty Next 50 Index Fund and Navi Nifty Bank Index Fund in January, and Navi US Total Stock Market Fund of Fund in February, which is currently the only fund in India offering exposure to Vanguard. Navi plans to launch 3 more funds by the end of March this year.

Dolores W. Simon