Navi Mutual Fund launches Navi Nifty Midcap 150 Index Fund
Premium- Navi Nifty Midcap 150 Index Fund will have a total expense ratio (TER) of 0.12% for the direct plan, which is the lowest cost compared to many other index funds in the category
Navi Mutual Fund has launched Navi Nifty Midcap 150 Index Fund, a passive equity scheme that will replicate the Nifty Midcap 150 Index, which represents the emerging companies of the country.
The fund will have a total expense ratio (TER) of 0.12% for the direct plan, which is the lowest cost compared to many other index funds in the category. The NFO opened on 21 February and will close on 2 March.
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. As per the fund house, 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. The fund house added that investors with exposure to large-cap stocks can consider investing in mid-cap companies to diversify their portfolio.
The top five sectors that the index has exposure to comprise financial services (16.89%), consumer goods (10.67%), industrial manufacturing (9.73%), automobile (8.96%) and IT (8%). Top stocks by weight include Adani Total Gas, Tata Power, SRF, AU Small Finance Bank, Voltas.
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. 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. As per the press note, the mutual fund house plans to launch three more funds by the end of March this year.
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