NFO Alert: Tata Mutual Fund Launches Nifty Midcap 150 Index Fund

Tata Mutual Fund has launched a New Fund Offer (NFO) for the Tata Nifty Midcap 150 Index Fund. It offers both the Direct and Regular Plan. This is an open-ended equity scheme focused on mid-cap stocks. The primary objective of the scheme is to deliver returns that closely correspond to the total returns of the Nifty Midcap 150 Index (TRI). However, investors should note that there is no assurance that the scheme will achieve its investment objective.

NFO Details

The NFO opens for subscription on 2nd June 2025 and closes on 16th June 2025. The minimum investment amount is ₹5,000. The scheme is available under 2 plan options- Growth and IDCW (Income Distribution cum Capital Withdrawal). There is no lock-in period, making it more flexible for investors. However, an exit load of 0.25% is applicable if the units are redeemed within 15 days from the date of allotment. The benchmark index for this scheme is the Nifty Midcap 150 TRI.

Risk and Suitability

The fund is categorised under the Equity: Mid Cap segment and carries a "Very High" risk rating, as indicated by the Riskometer. Given this, the scheme is most suitable for investors with a high-risk appetite and a long-term investment horizon. The Value Research Rating for this fund is currently unrated.

Fund Management Team

The scheme will be managed by Mr. Kapil Menon and Mr. Rakesh Prajapati, both of whom commenced their roles on 2nd June 2025. Mr. Menon has been associated with Tata Mutual Fund since 2006, bringing extensive industry experience. Mr. Prajapati, joined Tata Mutual Fund after working with ICICI Securities Ltd., JM Financial, Edelweiss Securities Ltd., and IDFC Securities Ltd., adding further depth to the fund management team’s expertise.

Read More: NFO Alert: Nippon India Mutual Funds Launches BSE Sensex Next 30 ETF and Index Fund.

Conclusion 

This offering provides a potential opportunity for investors looking to gain exposure to India’s mid-cap segment through a passively managed index fund.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.