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. The fund will have a TER of 0.12%* for the direct plan, which is the lowest cost compared to any other index funds in the category. The NFO opened on 21st February 2022 and will close on 2nd March 2022. Investors can invest through online platforms like Groww, Paytm Money, Zerodha Coin, INDMoney, MF Utilities and more or by contacting their nearest distributors.
Navi Nifty Midcap 150 Index Fund 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 attractive returns over varied time horizons. Its 1 year, 5 year and 10-year CAGR are 46.1%, 18.7% and 19.6% respectively. Investors with exposure to large cap stocks can consider investing in mid cap companies to diversify their portfolio.
Commenting on the new fund, Sachin Bansal, Co-founder of the Navi Group said, "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."
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 funds. The mutual fund house plans to launch 3 more funds by the end of March this year.