Tata Asset Management Launches Nifty Midcap 150 Index Fund Reflecting India’s Emerging Market Leaders
Mumbai | June 07, 2025: Tata Asset Management, today announced the launch of Tata Nifty Midcap 150 Index Fund, a new passive offering that gives investors an opportunity to gain exposure to mid-sized Indian companies that may potentially grow faster than the country’s GDP. The New Fund Offer (NFO) will open for subscription on June 2, 2025, and close on June 16, 2025.
Despite the correction in midcap stocks in the recent market volatility, their outperformance to large cap peers in longer periods reflect investors’ confidence in the segment. The Nifty Midcap 150 TRI has delivered a 1-year rolling return of 21.89%, compared to 16.37% by the Nifty 50 TRI. Over a 3-year rolling period, midcaps have returned 15.8%, again outperforming large caps, which returned 12.38% during the same period (Source: Source: NSE, ICRA-MFI / Data from 1st Apr 2005 to 30th Apr 2025).
“Midcaps represent India’s growth frontier. Through the Tata Nifty Midcap 150 Index Fund, investors can get access to potential growth sectors and companies that are integral to India’s next phase of economic expansion,” said Anand Vardarajan, Chief Business Officer, Tata Asset Management. “The fund is suitable for long-term investors seeking a blend of growth and diversification, backed by discipline of passive investing.”
The Nifty Midcap 150 index comprises companies across 20 sectors and 74 basic industries (Source: AMFI), offering exposure to potentially growth sectors such as chemicals, oil, gas & consumable fuels, capital goods, automobiles & auto components, realty, financial services, information technology, etc. Notably, 39 industries present in the midcap space but absent in the large cap space, account for over 40% of the total weight of the index, highlighting the unique diversification benefit that the segment offers (Source: NSE | Data as on 30th Apr 2025 | Nifty 100 is considered as a universe for large caps and Nifty Midcap 150 is considered as universe for mid-caps). Over the past five years, 17 companies from the midcap segment have transitioned into large caps, illustrating the segment’s capacity to aim for wealth creation.
By tracking the Nifty Midcap 150 index through passive investment, investors avoid stock-specific risks and benefit from a disciplined and cost-effective investment strategy. Historically, midcaps have outperformed large caps and small caps in systematic investment plans (SIPs), delivering an alpha of approximately 4% and 2% CAGR over the past 20 years respectively (Source: ICRA-MFI). We believe it makes them as one of the suitable choice for long-term investors.