Latest news with #NiftyMidcap150TotalReturnIndex
Time of India
2 days ago
- Business
- Time of India
NFO Update: Bank of India Mutual Fund launches BOI Mid Cap Fund
Bank of India Mutual Fund has announced the launch of the Bank of India Mid Cap Fund , an open-ended equity scheme aiming to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid-cap companies. The New Fund Offer ( NFO ) will open for subscription on July 31 and close on August 14. Also Read | Smallcap mutual funds dominate return charts in 5 & 10 years. What's driving the surge? Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Data Analytics Healthcare Digital Marketing CXO Artificial Intelligence PGDM Technology MCA Product Management MBA Degree Data Science Public Policy Operations Management others Finance Leadership Others Design Thinking Project Management Management Cybersecurity Data Science Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details "The launch of the Bank of India Mid Cap Fund reflects our commitment to offering investors access to high-growth opportunities in India's vibrant equity markets. As the Indian economy continues to expand and diversify, we believe mid-cap companies are well-positioned to be key beneficiaries of the next phase of value creation across sunrise sectors and business models, as well as existing companies benefiting from India's increasing integration into global supply chains,' said Mohit Bhatia, CEO – Bank of India Investment Managers Private Limited (BOIIM). Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » 'This fund is designed to help investors participate in that journey with discipline and confidence,' he added. The performance of the fund will be benchmarked against the Nifty Midcap 150 Total Return Index and will be managed by Alok Singh. Live Events The minimum application amount is Rs 5,000, and in multiples of Re 1 thereafter. The exit load is 1% for redemptions/switch-outs of units within 60 days from the date of allotment. It will be nil for any redemption/switch-out after 60 days. With India's economy entering a new phase of structural growth, mid-cap companies are emerging as a strong opportunity for wealth creation. The Bank of India Mid Cap Fund is designed to capture this dynamic opportunity by identifying quality mid-sized enterprises with scalable business models, strong management, and competitive moats, the press release stated. 'The Bank of India Mid Cap Fund is designed for investors willing to stay invested for the long term and participate in India's mid-cap growth opportunity through professional fund management. Mid-cap stocks often have the potential to outperform their larger counterparts during market recoveries, and this fund aims to capitalize on that potential—offering investors a unique opportunity to engage in the Indian growth narrative,' said Alok Singh, CIO – BOIIM. According to the fund house, the scheme aims to capture India's multi-year structural growth through high-potential mid-cap companies. It is backed by BOIIM's proven expertise in managing equity funds with meaningful mid-cap exposure. The fund offers diversified exposure across key growth sectors like financials, industrials, healthcare, and consumer. It also follows stringent risk management processes and maintains healthy diversification across stocks and sectors. Also Read | Consistent performers: Over 40 equity mutual funds offer over 15% CAGR in 3, 5, 7 and 10 year horizons The fund is focused on identifying quality mid-cap businesses with proven execution, scalable models, and sectoral tailwinds and it will follow a bottom-up stock-picking approach The fund seeks to balance growth and risk by investing in companies with competitive advantages and strong management and aims to leverage long-term compounding potential in India's expanding mid-cap space This fund is designed for investors seeking long-term capital appreciation by investing in fundamentally strong mid-cap companies that have the potential to generate relatively higher returns.
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Business Standard
02-06-2025
- Business
- Business Standard
New to Midcaps? Tata's Passive fund offers low-cost, diversified exposure
Tata Asset Management on Tuesday launched a new passive fund that gives investors a low-cost way to ride the midcap growth wave. The Tata Nifty Midcap 150 Index Fund, open from June 2 to June 16, 2025, tracks a diversified portfolio of mid-sized companies that are rapidly gaining market share across sectors. What is it? This is a passive index fund that aims to mirror the performance of the Nifty Midcap 150 Index, which includes 150 mid-sized companies across 20 sectors. These are businesses that are not yet giants like large caps but have shown consistent growth and potential. Key dates: NFO (New Fund Offer) period: June 2 to June 16, 2025 Minimum investment: ₹5,000 (and in multiples of ₹1 thereafter) Exit load: 0.25% if redeemed within 15 days Why Midcaps Matter to You Midcap companies often lie at the heart of India's economic momentum — they're agile, growth-oriented, and often industry leaders in the making. Historically, midcaps have outperformed both large caps and small caps: 1-year rolling return: Midcap index delivered 21.89%, vs 16.37% by Nifty 50 3-year rolling return: Midcaps returned 15.8%, vs 12.38% by large cap (Source: NSE, ICRA-MFI, Apr 2005–Apr 2025) What you are investing in: This open-ended index fund mirrors the Nifty Midcap 150 Total Return Index (TRI), offering exposure to 150 mid-sized companies ranked 101st to 250th by market cap in the Nifty 500 universe. Fund Managers: Kapil Menon & Rakesh Prajapati (combined 40+ years of experience) Why choose this fund? Diversification: The fund offers exposure to 74 industries, including those not represented in large-cap indices — like chemicals, realty, capital goods, and more. Growth Potential: Over the last five years, 17 midcap companies graduated to the large-cap category, showing the potential for wealth creation. Lower Costs: Being passively managed, it avoids the higher fees of actively managed funds. Risk-Spreading: Instead of betting on one stock, your money is spread across 150 companies. Plus, it avoids stock-specific risks. Who should invest? Long-term investors looking to benefit from India's evolving economic landscape Investors who prefer low-cost, rule-based investing Those seeking diversification beyond blue-chip stocks SIP (Systematic Investment Plan) investors aiming for compounded returns over 5–10 years Point to note: Midcap investments come with higher short-term volatility. Stay invested long enough to ride out the ups and downs. '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. "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. 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," the company said in a release. Why Midcaps Make Sense in 2025 While large caps offer stability, midcaps provide growth. These are companies typically valued between ₹33,000 crore and ₹1 lakh crore—big enough to be established, but small enough to grow rapidly. Key insights from the fund presentation: Midcaps have historically outpaced GDP growth, with their market cap-to-GDP ratio doubling in the last 10 years. They are less sensitive to foreign investor outflows compared to large caps, as promoter holding is higher (~55%). In the last 5 years, 17 midcap companies became large caps, showcasing the segment's transition power.
