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Nippon India Nifty Midcap 150 Index Fund NFO - Investment Objective, Returns, Risk, Scheme Details

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Gaurav Seth
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Nippon India Nifty Midcap 150 Index Fund NFO

Nippon India Mutual Fund has announced the launch of the Nippon India Nifty Midcap 150 Index Fund. The scheme would be investing in equity securities of the constituents of the Nifty Midcap 150 Index in the same allocational pattern.

The New Fund Offer (NFO) starts on 04th February 2021 and will end on 12th February 2021. The fund will re-open for continuous sale and purchase on or before 26th February 2021.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth by generating returns closely corresponding to the returns of constituent securities in the Nifty Midcap 150 Index before expenses & subject to any tracking errors.

What is the Nifty Midcap 150 Index?

  • Nifty Midcap 150 Index is the index representing the next 150 companies after the top 100 companies. The midcap companies are ranked from 101th-250th in terms of market capitalization.
  • This index measures the performance and valuations of the mid-cap companies in the market.
  • The index is based on the free-float market capitalization method.
  • As of 15 January 2021, the index reflects 15.2% of the total market capitalization of the listed stocks on NSE.

Top Constituents of Nifty Midcap 150 Index :

Name of CompanyWeightage
Apollo Hospitals Enterprises Limited 2.05%
Jubilant Foodworks Limited1.89%
Zee Entertainment Enterprises Limited1.81%
Shriram Transport Finance Co. Limited 1.74%
Voltas Limited 1.69%
Crompton Greaves Consumer Electricals Limited 1.56%
PI Industries Limited 1.56%
Yes Bank Limited 1.47%
Page Industries Limited 1.42%
AU Small Finance Bank Limited 1.41%
MRF Limited1.39%
Trent Limited1.36%

*As of 31st December 2020

Nifty Midcap 150 Index-  Valuations vs Other indices

Index NameP/B RatioDividend Yield
Nifty Midcap 1503.131.50%
Nifty 504.091.10%
Nifty 1004.141.09%
Nifty 5003.851.17%

*As of 15th January 2021

Features of Nippon India Nifty Midcap 150 Index Fund

  • The Fund will be investing at least 95% of its assets in equity securities by replicating the Nifty Midcap 150 Index.
  • The fund offers diversification/exposure to all the Mid-cap companies in the Indian market.
  • The index fund has a lower expense ratio as compared with other active equity funds.

Why invest in Nippon India Nifty Midcap 150 Index Fund?

  • This fund provides exposure to the mid-cap segment of the market. The midcap index is well diversified and spread across 33 industries.
  • Eliminates the non-systematic risk like portfolio manager selection, & stock picking as it invests in a whole basket of 150 mid-cap companies.
  • The fund aims to participate in the growth story of midcap companies which could later become large-cap companies.
  • This fund gives exposure to the midcap companies with a low-cost index fund in terms of expense ratio.
  • Provides non-Demat account holders an opportunity to invest in the Nifty Midcap 150 Index.

Investment Suitability

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Interested in earning returns that closely correspond to the returns generated by the Nifty Midcap 150 Index, subject to tracking errors.
  • Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern-

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity securities representing Nifty Midcap 150 Index95%100%Moderate to High
Debt and money market instruments, reverse rep, tri-party repo, and units of other schemes investing in money market instruments & liquid schemes 0%5%Low to Moderate

About the scheme-

Name of the fundNippon India Nifty Midcap 150 Index Fund
Fund launched byNippon India Mutual Fund 
Asset Management CompanyNippon Life India Asset Management Limited 
Type of schemeAn open-ended scheme replicating Nifty Midcap 150 Index
Investment ObjectiveThe investment objective of the scheme is to provide long-term capital growth by generating returns closely corresponding to the total returns of the underlying securities in the Nifty Midcap 150 Index before expenses, subject to any tracking errors.
BenchmarkNifty Midcap 150 TRI
Entry LoadNot Applicable
Exit LoadNot Applicable
Minimum Application Amount ₹ 5,000 & in multiple of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiple of ₹ 1 thereafter
SIP Top-up, STP,DTP & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund ManagersMr. Mehul Dama

SIP Details

Type Minimum InstallmentsMinimum Amount
Monthly SIP60₹ 100 & in multiples of ₹ 1 thereafter
12₹ 500 & in multiples of ₹ 1 thereafter
6₹ 1,000 & in multiples of ₹ 1 thereafter
Quarterly SIP12₹ 500 & in multiples of ₹ 1 thereafter
4₹ 1,500 & in multiples of ₹ 1 thereafter
Annual SIP2₹ 5,000 & in multiples of ₹ 500 thereafter

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