Nifty Midcap 150 index fund is a type of equity mutual fund that primarily invests its assets in the stocks of mid-cap companies listed on the NSE (National Stock Exchange). These index funds track the Nifty Midcap 150 index with an aim to offer returns in line with the performance of the underlying index. In this blog, we have listed out 9 best Nifty Midcap index funds for you to consider so that you can make an informed decision.
Did You Know: Nifty Midcap 150 Index has given annualised returns of 11.30% since the last 5 years, which means if you had invested ₹1 lakh in 2018, your money could have grown to close to ₹1.8 lakh (based on 5 year returns)
Refer to the table below to check top Nifty Midcap 150 index funds:
|Navi Nifty Midcap 150 Index Fund||NAV: ₹11.08|
AUM: ₹28.21 Crore
Expense Ratio: 0.12%
|Motilal Oswal Nifty Midcap 150 Index Fund||NAV: ₹21|
AUM: ₹634.48 Crore
Expense Ratio: 0.22%
|Aditya Birla Sun Life Nifty Midcap 150 Index Fund||NAV: ₹12.96|
AUM: ₹78.76 Crore
Expense Ratio: 1.02%
|Nippon India Nifty Midcap 150 Index Fund||NAV: ₹13.50|
AUM: ₹541.35 Crore
Expense Ratio: 0.22%
|ICICI Prudential Nifty Midcap 150 Index Fund||NAV: ₹10.35|
AUM: ₹97.14 Crore
Expense Ratio: 1%
|SBI Nifty Midcap 150 Index Fund||NAV: ₹10.16|
AUM: ₹126.94 Crore
Expense Ratio: 0.40%
|UTI Nifty Midcap 150 Quality 50 Index Fund||NAV: ₹9.28|
AUM: ₹117.72 Crore
Expense Ratio: 0.87%
|DSP Nifty Midcap 150 Quality 50 Index Fund||NAV: ₹9.52|
AUM: ₹145.23 Crore
Expense Ratio: 0.99%
|Tata Nifty Midcap 150 Momentum 50 Index Fund||NAV: ₹9.52|
AUM: ₹145.23 Crore
Expense Ratio: 0.99%
Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Considered as one of the best Nifty Midcap 150 index fund schemes, the Nifty Midcap 150 Index Fund from Navi Mutual Fund offers investors a chance to invest in the emerging companies at an extremely low cost. Since its inception, the fund has given 2.64% 6-month annualised return. Let’s look into the scheme details.
Also considered as one of the top Nifty Midcap 150 index fund schemes, this open-ended mutual fund scheme is meant for investors having a long-term investment horizon, say more than 5 years. The fund is known to have a low tracking error of 0.18%. Let’s check out the scheme details.
Launched on 1 April 2021, the Aditya Birla Sun Life Nifty Midcap 150 Index Fund is suitable for investors looking for long-term capital appreciation. The scheme invests in equity and equity-related securities replicating the composition of the Nifty Midcap 150 Index. Let’s check out the scheme details.
Considered as one of the top Nifty Midcap 150 index fund schemes, this scheme aims to offer returns closely corresponding to the total returns of the securities as represented by the Nifty Midcap 150 Index before expenses, subject to tracking errors. Let’s look into the scheme details:
Launched in December 2021, ICICI Prudential Nifty Midcap 150 Index Fund could be suitable for investors looking for long-term capital growth by investing in the mid-cap segment. The index weightage is re-balanced on a semi-annual basis – January and July. Now, let’s check out the scheme details.
SBI Nifty Midcap 150 Index Fund has been in existence since 21 September 2022. The fund has an expense ratio of 0.40%, which is higher than other index fund schemes. The scheme is ideal for investors seeking long-term capital appreciation. Let’s check out the scheme details:
Introduced on 11 April 2022, the UTI Nifty Midcap 150 Quality 50 Index Fund has an AUM of ₹118 crore (approx.). The fund is suitable for investors having an investment horizon of 7+ years. The fund has a low tracking error of 0.07%. Let’s look into the scheme details.
This scheme gives access to a select group of 50 mid-sized companies based on quality scores chosen from Nifty Midcap 150 index. The fund replicates the performance Nifty Midcap 150 Quality 50 Index. Let’s check out the scheme details.
Tata Nifty Midcap 150 Momentum 50 Index Fund seeks to mirror the performance of the Nifty Midcap 150 Momentum 50 Index. The index selects the top 50 stocks based on their momentum score out of a universe of 150 midcap stocks.
*Note that the data provided are as of 13 February 2023.
Nifty Midcap 150 index funds are passively-managed funds, which means fund managers don’t actively participate in the buying and selling of stocks. However, a fund manager of Nifty Midcap 150 index fund is responsible for constructing the portfolio of the fund. The fund manager creates the portfolio in such a way that it matches the underlying index i.e. the Nifty Midcap 150 index. All the company stocks and sectors along with their weightage are taken into consideration while building the index.
The Nifty 150 Midcap index comprises 150 mid-cap companies based on market-cap. This list keeps changing based on the changes in company market cap. However, here’s a sector-wise representation of the midcap 150 index for your understanding.
|Sector||Weight (in percentage)|
|Automobile and Auto Components||8.53%|
|Oil, Gas & Consumable Fuels||4.04%|
|Fast-Moving Consumer Goods||3.81%|
|Metals & Mining||2.93%|
|Media, Entertainment & Publication||1.42%|
You can invest in Nifty Midcap 150 index fundS via AMC or a third-party aggregator. Here are the steps you should follow:
Nifty Midcap 150 Midcap index funds could be suitable for:
Midcap companies are generally considered to be more volatile compared to large-cap companies, which means that there is a higher degree of risk involved. If you have a higher risk appetite and are comfortable with the possibility of short-term fluctuations, midcap 150 index funds could be a suitable option.
Mid-cap funds are prone to short-term market movements, however, they have the potential to offer inflation-beating returns in the long term. So, if you have an investment horizon of 7+ years, you may invest in these funds.
Nifty Midcap 150 has given 16.40% in returns since its inception. These funds are known to offer higher returns than large-cap index funds. However, consider your risk appetite and investment goals before investing in Nifty Midcap 150 index funds.
The midcap 150 index gives investors exposure to companies from diverse sectors. This could help in mitigating risk in the long term while capturing the growth of the emerging companies of India.
Here are a few things you could consider before investing in best Nifty Midcap 150 index funds:
It’s important to have a clear understanding of your investment goals and how midcap funds fit into your overall financial plan. This will help you determine whether midcap funds align with your investment objectives and whether they offer the potential returns you are looking for.
Midcap funds are considered to be riskier than large-cap funds, as midcap companies are often smaller and less established. It’s important to assess your risk tolerance and determine whether you are comfortable with the higher degree of risk associated with midcap funds.
Midcap funds can be volatile in the short term, but they have the potential to generate higher returns over the long term. If you have a long-term investment horizon, midcap funds may be a good option to consider.
Index funds usually have a lower expense ratio. However, different index fund schemes have different expense ratios. A higher expense ratio index fund could eat into your returns. So, consider selecting a fund having a low-expense ratio.
Index fund returns are subject to tracking error. Tracking error is a measure of the deviation between the performance of a fund and the performance of the benchmark index that it is designed to track. Best Nifty 150 Midcap index funds have a low tracking error.
Nifty Midcap 150 index funds are taxed like any other equity fund and depend on the holding period and gains earned.
Gains below ₹1 lakh are exempt from tax.
Nifty Midcap 150 index funds are a popular choice among investors seeking higher returns but at a lower risk than small cap funds. Select the best Nifty Midcap 150 index fund based on the fund’s tracking error, expense ratio, alignment with your investment goals, etc.
If you’re a beginner or seasoned investor, here’s an opportunity for you to capture the growth of mid-cap companies. Navi Mutual Fund offers Nifty Midcap 150 Index Fund, a low-cost scheme that tracks the performance of the Nifty Midcap 150 index. What’s even better? You can start investing with just ₹10!
As per NSE factsheet, as of 31 January 2023, Nifty Midcap 150 index has given 1-years returns of 2.56%, 5-year returns of 11.30% and 16.16% returns since inception.
Here are some of the top performing Nifty Midcap 150 index funds:
• Navi Nifty Midcap 150 Index Fund
• Motilal Oswal Nifty Midcap 150 Index Fund
• Aditya Birla Sun Life Nifty Midcap 150 Index Fund
• Nippon India Nifty Midcap 150 Index Fund
• ICICI Prudential Nifty Midcap 150 Index Fund
Nifty 100 is an index that represents top 100 large-cap Indian companies ranked 1 – 100 on the NSE, whereas Nifty Midcap 150 is an index that represents 150 mid-cap companies ranked 101 – 250 on the NSE.
The Nifty Midcap 50 is an index that represents top 50 mid-cap companies ranked 101 – 150 on the NSE from the Nifty 150 Midcap universe. The Nifty Midcap 150 index comprises 150 midcap companies ranked 101 -250 on the NSE.
In the Nifty Midcap 150 index, there are 150 companies ranked 101-250 on the NSE based on market cap of below ₹5,000 crore.
Like any other equity funds, Nifty Midcap 150 index funds are also prone to short-term market volatility. However, these funds have the potential to generate substantial returns in the long term. So, consider these factors along with your investment goals, risk tolerance and investment horizon before investing in these funds.
Nifty Midcap 150 index fund is taxed just like any other equity fund. Short-term Capital Gains (STCG) are taxed at 15% whereas Long-term Capital Gains (LTCG) above ₹1 lakh are taxed at 10%. Gains below ₹1 lakh are exempt from tax.
As of 31 January 2023, Nifty Midcap 150 has given a 1-year return of 2.56%.
As of 31 January 2023, Nifty Midcap 150 has given a 5-year return of 11.30%.
As of 31 January 2023, since inception, theNifty Midcap 150 has given 16.16% as returns
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