Two new funds to track the Nifty Midcap 150 Index | Value Research Navi Mutual Fund and Mirae Asset Mutual Fund launched new funds to track the Nifty Midcap 150 index.
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Two new funds to track the Nifty Midcap 150 Index

Navi Mutual Fund and Mirae Asset Mutual Fund launched new funds to track the Nifty Midcap 150 index.

Navi Mutual Fund and Mirae Asset Mutual Fund added two new funds to their list of funds to track the Nifty Midcap 150 index. The index represents the companies ranked from 101 to 250 based on their total market capitalisation from the Nifty 500 index and is an indicator to measure the performance of the mid-cap segment of the Indian equity market.

Navi Nifty Midcap 150 Index Fund is open for subscription from February 21 to March 02, 2022 and will be managed by Pranav Vasa. The Mirae Asset Nifty Midcap 150 ETF is open for subscription from February 24 to March 04, 2022, and will be managed by Ekta Gala. Both these funds would be tracking the Nifty Midcap 150 index. Here are the key details of the two NFOs:

Two new funds to track the Nifty Midcap 150 Index

About the strategy
Both the funds invest in Nifty Midcap 150 index, a portfolio of 150 companies (101-250) selected based on full market capitalisation from Nifty 500. The underlying index comprises stocks which are largely dominated by three sectors - Financial services (16.89 per cent), Consumer goods (10.67 per cent) and Industrial manufacturing (9.73 per cent), as of January 31, 2022.

About the performance
On the performance front, a comparison of 5-year rolling returns of the Nifty Midcap 150 index with the broader Nifty 500 index for the past 5 years shows that the mid-cap index has consistently outperformed the Nifty 500 index, though it has had higher volatility than the broader market index.

We have six other funds that track the Nifty Midcap 150 index. Out of these, four are ETFs and two are index funds. Five of these funds are relatively new, launched in the last couple of years, while the oldest one is Nippon India ETF Nifty Midcap 150, which was also launched not so long ago, i.e., in early 2019.

Two new funds to track the Nifty Midcap 150 Index

About the AMC
As of January 2022, Navi Mutual Fund manages assets worth over Rs 707 crore across six open-end mutual fund schemes. Apart from the newly launched index fund, the fund house currently has three more index funds in its passive line-up.

While Mirae Asset Mutual Fund manages assets worth over Rs 89,000 crore across 22 open-end mutual fund schemes. Out of these, the fund house currently has 14 more funds in its passive fund offerings managing assets of more than Rs 3,300 crore.

Also read: Three questions you should ask before investing in an NFO


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