Last Updated on March 18, 2023 at 7:04 pm
After we reported that Only 3 out of 28 mid cap MFs consistently beat Nifty Midcap 150, many readers wished to include a mid cap index fund in their portfolio and wanted to know how to choose one.
As regular readers may know, we have always maintained that the Nifty Next 50 is an excellent substitute for the Nifty Midcap 150. See, for example, Nippon India Nifty Midcap 150 Index Fund Review. However, the nifty next 50 index has slipped a bit over the last 18 months: Nifty Midcap 150 beats Nifty Next 50 for the first time.
We still believe that the Nifty Next 50 is all the “mid cap exposure” one needs in a portfolio. However, many readers have found this stand irritating. So for what it is worth, we would like to present some data on the available Midcap index funds.
At the time of writing, there are 11 index funds in the midcap space. The last four are factor-based indices with one Midcap 50-based index (in blue). The numbers in brackets is the AUM in crores.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
- Aditya Birla SL Nifty Midcap 150 Index Fund (78.7589)
- ICICI Pru Nifty Midcap 150 Index Fund (97.1397)
- Motilal Oswal Nifty Midcap 150 Index Fund (634.4764)
- Navi Nifty Midcap 150 Index Fund (27.5031)
- Nippon India Nifty Midcap 150 Index Fund (550.2018)
- SBI Nifty Midcap 150 Index Fund (126.9383)
- Axis Nifty Midcap 50 Index Fund (35.3939)
- DSP Nifty Midcap 150 Quality 50 Index Fund (145.2318)
- Tata Nifty Midcap 150 Momentum 50 Index Fund (29.8221)
- Edelweiss Nifty Midcap150 Momentum 50 Index Fund (18.4615)
- UTI Nifty Midcap 150 Quality 50 Index Fund(G)-Direct Plan (117.7233)
Only Motilal Oswal Nifty Midcap 150 Index Fund and Nippon India Nifty Midcap 150 Index Fund have AUMs above Rs. 500 Crores. All the rest have AUMs below Rs. 150 Crores at the time of writing.
We suggest you steer clear of momentum and quality-based mid-cap index funds. See, for example, NSE Index Watch: Biggest winners and losers of 2022. We also recommend not investing in Midcap 50. See Axis Nifty Midcap 50 Index fund Review. So that leaves Mid cap 150!
There are only four funds with a history greater than one year. The rest, regardless of history, can be ignored (unless you have the confidence and conviction).
- ICICI Pru Nifty Midcap 150 Index Fund(G)-Direct Plan (0.0715) (-0.6563)
- Aditya Birla SL Nifty Midcap 150 Index Fund(G)-Direct Plan (0.0536) (-0.5689)
- Nippon India Nifty Midcap 150 Index Fund(G)-Direct Plan (0.0718) (-0.5545)
- Motilal Oswal Nifty Midcap 150 Index Fund(G)-Direct Plan (0.0753) (-0.3175)
The Motilal Oswal fund is the oldest, with a three-year history.
The first number within brackets is the last 1Y trailing tracking errors in percentage. There is little to distinguish them (One can’t take the 0.0536 too seriously. There is insufficient data).
The second number within brackets is the last 1Y tracking difference = fund return minus index return. Again can’t take the -0.3175 too seriously. So there is not much information to meaningfully distinguish the funds. So you could do an inky-pink ponky or choose the AMC you prefer. Most choices in life amount to a leap of faith (with or without data support!).
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter with the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
Explore the site! Search among our 2000+ articles for information and insight!
About The Author
Dr. M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter, Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu gets a superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & it's content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)