Mumbai: Tata Asset Management has introduced the Tata Nifty Midcap 150 Index Fund, a new passive investment opportunity designed to provide long-term investors with exposure to India’s most promising mid-sized companies. The New Fund Offer (NFO) opens on June 2, 2025, and will close on June 16, 2025.
The Nifty Midcap 150 Index Fund allows investors to participate in India’s next phase of economic expansion by tracking a diversified index of 150 midcap companies.
These firms span 20 sectors and 74 industries, including high-growth segments such as chemicals, oil & gas, real estate, capital goods, automobiles, financial services, and IT.
Notably, 39 industries included in the midcap index are absent from the large-cap space, contributing over 40% of the index’s total weight—underscoring the diversification benefit for investors.
Despite recent market fluctuations, midcaps have shown long-term outperformance. As per NSE and ICRA-MFI data (April 2005 to April 2025), the Nifty Midcap 150 TRI has delivered a 21.89% one-year rolling return, outperforming the Nifty 50 TRI’s 16.37%.
Over three-year rolling periods, midcaps have returned 15.8% versus 12.38% by large caps. Moreover, 17 midcap companies have transitioned to large-cap status in the last five years, indicating the segment’s role in wealth creation.
Nifty Midcap 150 Index Fund: Tracking Diversified Index of 150 Midcap Companies
“Midcaps represent India’s growth frontier,” said Anand Vardarajan, Chief Business Officer at Tata Asset Management. “With the Tata Nifty Midcap 150 Index Fund, we offer investors a disciplined and cost-efficient strategy to access emerging leaders of the Indian economy.”
The passive nature of the fund mitigates stock-specific risk while delivering consistent returns through market cycles. Historical data also reveals that midcap SIPs have outperformed both large- and small-cap SIPs by generating an alpha of 4% and 2% CAGR respectively over the last 20 years.
The fund is ideally suited for long-term investors seeking a growth-focused portfolio with built-in sectoral diversification, driven by the fundamentals of India’s expanding midcap universe.
