Sushil Bajaj |
📅 Last Updated on: October 17, 2025
A midcap fund is an equity mutual fund that primarily invests in mid-sized companies — usually ranked between 101st to 250th by market capitalization in India. These companies are often in the growth stage, offering a balance between the stability of large caps and the high-risk/high-return potential of small caps.
Key Features of Midcap Funds:
| Parameter | Details |
|---|---|
| Fund Name | SBI Nifty Midcap 150 Index Fund |
| Type | Equity / Index (Midcap index replication) |
| Launch Date | 21 September 2022 |
| Benchmark | Nifty Midcap 150 TRI |
| Fund Manager | Harsh Sethi |
| Assets Under Management (AUM) | Approx ₹ 900+ crore (varies with date) |
| Exit Load | 0.25% if redeemed within 30 days |
| Min. Investment | SIP: ₹ 500 ; Lump sum: ₹ 5,000 |
| Risk Level | Very High / Aggressive (Equity midcap index) |
The official objective of SBI Nifty Midcap 150 Index Fund is:
“To provide returns that closely correspond to the total returns of the securities as represented by the underlying index (Nifty Midcap 150 TRI), subject to tracking error.”
In other words, the fund does not try to outperform the index but to mirror it as closely as possible (after accounting for expenses, tracking error, cash drag).
Because of this, the fund will follow a passive / index replication style rather than active stock picking.
Here are some compelling reasons:
You get exposure to a broad set of 150 midcap companies rather than picking individual stocks.
Midcaps tend to have higher growth potential than large caps over long term (with corresponding risk).
Because this is passive, the expense ratio is lower than many actively managed midcap funds.
Good for investors with 5+ year horizon who want systematic exposure to the midcap segment.
Holdings, strategy and index methodology are transparent.
However, there are tradeoffs: since it is passive, you won’t beat the index (barring tracking error). Also midcap volatility must be borne by the investor.
As of the latest data, the fund’s sector weights are broadly:
Some of the top 5 holdings commonly in the portfolio:
For updated detailed Performance data and key informations as on November 7, 2025
Visit SBI Nifty Midcap 150 Index Fund Performance Page
Expense Ratio: Check latest factsheet.
Exit Load: 0.25% if redeemed within 30 days; nil after 30 days.
Taxation:
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Midcap funds (especially index ones) can face challenges. Here’s a table summarizing common pain points and how this fund or investors might mitigate them:
| Pain Point / Concern | Mitigation / What SBI Midcap Index Fund Can Do | What Investors Should Do |
|---|---|---|
| High Volatility / Drawdowns | Being an index fund, it tracks the market — so volatility is expected. | Maintain a 5+ year horizon, avoid panic redemptions, diversify across funds. |
| Tracking Error / Underperformance vs Benchmark | Fund manager minimizes error via optimal replication, cash management. | Monitor tracking error over time; compare vs index benchmarks. |
| Expense Ratio & Cost Drag | Low cost relative to active funds helps reduce drag. | Choose Direct plan, avoid unnecessary switching. |
| Liquidity / Cash Drag | Keep minimal cash buffer; invest majority in index securities. | Invest in phases (SIP) to smooth timing risk. |
| Tax Efficiency | Being equity fund, favorable long-term tax treatment. | Hold for more than 1 year to benefit from LTCG structure. |
| Limited Track Record (New Fund) | Use index as benchmark; evaluate based on tracking error and consistency. | Combine with established funds until confidence builds. |
| Rebalancing / Corporate Actions | Fund handles corporate events, rebalancing internally. | Be aware that small deviations due to corporate actions may occur. |
| Investor Behavior (timing, chasing returns) | Educate investors about long-term investing, avoid timing. | Invest via SIP, avoid panic moves, stay disciplined. |
SIP: ₹ 500 ; Lump sum: ₹ 5,000 (check latest scheme documents)
No, there is no lock-in period. You can redeem anytime (subject to exit load if within 30 days).
Active funds try to outperform but have higher costs and manager risk. This index fund gives near-index returns at lower cost but no outperformance.
Yes (with caution): if the investor understands volatility and holds for long term, index funds are simpler and transparent.
Rebalancing typically follows index methodology (quarterly or periodic adjustments) depending on the index provider.
The SBI Nifty Midcap 150 Index Fund offers investors a cost-efficient, transparent, and disciplined way to access the midcap universe of India. Its passive, index-based approach makes it suitable for investors looking for predictable exposure (rather than aiming to beat the market). The key for success lies in staying invested for the long term, tolerating volatility, and staying disciplined.
Because the fund is relatively new, its performance record is still building — but its alignment with the Nifty Midcap 150 TRI benchmark, relatively low cost (for an equity fund), and the backing of SBI Mutual Fund (a reputable AMC) make it a strong contender in the midcap index fund space.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future returns. Before investing, you should consult a qualified financial advisor, consider your risk tolerance, investment horizon, and review the latest scheme documents, factsheet and disclosures from SBI Mutual Fund.
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