Tata Mutual Fund has introduced a new scheme called the Tata Nifty Midcap 150 Index Fund, which falls under the midcap category.
The New Fund Offer (NFO) will be available from June 2 to June 16, 2025. This is an open-ended equity fund aiming to provide high returns by investing mainly in top midcap companies.
Investors can start with a minimum amount of Rs 5,000. The fund’s benchmark is the NIFTY Midcap 150 TRI.
This scheme is suitable for those who want better returns than large-cap funds but with less risk compared to small-cap funds.
Key Fund Details
Fund House: Tata Mutual Fund
NFO Open Date: June 2, 2025
NFO Close Date: June 16, 2025
Fund Type: Open-Ended Equity Midcap
Minimum Investment: Rs 5,000
Lock-in Period: None
Exit Load: 0.25% if redeemed within 15 days
Risk Level: Very High
Benchmark: NIFTY Midcap 150 TRI
Fund Portfolio and Investor Suitability
Anand Varadarajan, Chief Business Officer at Tata Asset Management, highlighted that midcap companies represent India’s growth potential.
This fund allows investors to tap into emerging sectors and companies that will contribute to India’s future economic growth.
It is ideal for long-term investors who want diversified exposure through passive investing.
The fund tracks the Nifty Midcap 150 Index, which includes companies ranked 101 to 250 in the Nifty 500 Index.
It focuses more on larger midcap firms while giving smaller companies less weight.
The portfolio is diversified across sectors such as industrials, financials, consumer goods, healthcare, and IT, with rebalancing twice a year.
This fund suits investors seeking higher growth than large-cap funds with less volatility than small-cap funds. It aims to closely follow the performance of the Nifty Midcap 150 TRI benchmark.
Dividend Policy
Any dividends paid by the scheme depend on the available surplus and will be distributed to unit holders registered on the record date.
Dividend payouts are decided by the fund manager with trustee approval and follow SEBI and NSE regulations. The scheme does not guarantee returns.
