Tata Mutual Fund Filed Draft SID with SEBI for Tata Nifty Midcap 150 Index Fund

Tata Mutual Fund has submitted a draft Scheme Information Document (SID) to launch a new open-ended index fund—Tata Nifty Midcap 150 Index Fund. This fund is designed to mirror the performance of the Nifty Midcap 150 Total Return Index (TRI), offering investors a passive investment route into India's mid-cap segment.

Who Should Consider This Fund?

This scheme is suitable for investors who are aiming for:

• Long-term capital growth
• Returns that reflect the performance of the Nifty Midcap 150 Index (TRI), subject to tracking error.

Investment Objective

The primary objective of the Tata Nifty Midcap 150 Index Fund is to generate returns, before expenses, that are broadly in line with the Nifty Midcap 150 Index (TRI). While the fund will strive to replicate the index performance as closely as possible, investors should note that there is no guarantee or assurance of achieving the stated objective or generating any returns.

Investment Strategy

This fund will be passively managed, following a replication strategy to closely track the Nifty Midcap 150 Index (TRI). The scheme will:

• Invest a minimum of 95% of its assets in the stocks that constitute the underlying index, in the same proportion (weightage).
• Use debt or money market instruments, including mutual fund units, for liquidity and expense management.
• Take short-term positions in equity derivatives of the index constituents during rebalancing, index changes, or when stock availability is limited.

The fund is well-suited for investors seeking diversified exposure to mid-cap companies through a cost-effective, passively managed portfolio.

Portfolio Composition

The scheme will primarily invest in the constituents of the Nifty Midcap 150 Index (TRI), maintaining the same allocation as the index. It may also:

• Temporarily utilise equity derivatives for efficient portfolio management, particularly during corporate actions or market-driven index reconstitution.
• Operate within the regulatory framework set by SEBI, including adherence to the guidelines outlined in Clause 12.25 of the SEBI Master Circular on Mutual Funds dated June 27, 2024.

Also Read: Best Mutual Fund SIP Plan for May 2025

Conclusion

This fund represents a strategic opportunity for investors looking to benefit from India’s mid-cap growth story through a disciplined and rules-based approach.

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.