The New Fund Offer (NFO) opens on June 2, 2025, and closes on June 16, 2025.
The fund aims to replicate the Nifty Midcap 150 Index. This index includes companies across 20 sectors and 74 industries. It covers segments like chemicals, capital goods, real estate, financial services, and information technology.
Currently, 39 industries in the midcap index are not present in the large-cap universe. These account for over 40% of the index weight, offering diversification benefits.
Midcaps have outperformed large caps over time. The Nifty Midcap 150 TRI delivered 21.89% 1-year rolling returns versus 16.37% for the Nifty 50 TRI. Over a 3-year rolling period, midcaps returned 15.8% compared to 12.38% from large caps. (Source: NSE, ICRA-MFI | Data till April 30, 2025)
The fund follows a passive approach, helping investors avoid stock-specific risks. According to Tata Asset Management, SIPs in midcap indices have outperformed large and small cap SIPs by around 4% and 2% CAGR respectively over the past 20 years.
Tata Mutual Fund has over 59 lakh investor folios as of April 30, 2025. Established in 1994, it offers a wide range of equity, debt, and hybrid funds.