Nippon India Nifty Midcap Index Fund: Significant performance with 53.29% this year

The Nippon India Nifty Midcap 150 Index Fund is designed to mirror the total returns of the securities represented by the Nifty Midcap 150 Index, aiming for close correspondence before expenses and subject to tracking errors. The fund, launched on February 19, 2021, employs a passive investment strategy to achieve its objective.

Nippon India Nifty Midcap Index Fund -Growth Since Inception (2021)

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As of April 30, 2024, the NAV of the fund stood at ₹21.37, reflecting a steady increase over time. The fund has demonstrated an impressive absolute return of 122.41% and an annualised return of 27.55% since inception.

Fund Performance and Returns

The fund has delivered a robust performance

  • 1-Year CAGR: 57.13%
  • 3-Year CAGR: 27.00%
  • Since Inception: 26.84%

When compared to its benchmark, the Nifty Midcap 150 TRI, the fund’s performance is commendable

  • 1-Year CAGR: 58.64%
  • 3-Year CAGR: 28.41%
  • Since Inception: 28.30%

In contrast, the Nifty 50 TRI, which serves as an additional benchmark, recorded lower returns:

  • 1-Year CAGR: 26.27%
  • 3-Year CAGR: 16.92%
  • Since Inception: 15.03%

These figures highlight the fund’s effectiveness in delivering higher returns relative to the broader market represented by the Nifty 50 TRI, making it a compelling option for investors seeking higher growth potential.

Nippon India Nifty Midcap Index Fund – Recent Performance

Period Invested for ₹10000 Invested on Latest Value Absolute Returns Annualised Returns Category Avg Rank within Category
1 Week 24-May-24 9876.00 -1.24% -0.99% 115/214
1 Month 30-Apr-24 10219.80 2.20% 1.15% 40/213
3 Month 29-Feb-24 10815.10 8.15% 4.16% 38/202
6 Month 30-Nov-23 12088.40 20.88% 13.50% 35/191
YTD 01-Jan-24 11238.10 12.38% 7.91% 35/194
1 Year 31-May-23 15328.80 53.29% 53.11% 25.47% 36/177
2 Year 31-May-22 18304.50 83.05% 35.24% 20.68% 6/92
3 Year 31-May-21 20053.10 100.53% 26.08% 16.83% 4/45
Since Inception 17-Feb-21 22240.90 122.41% 27.55% 16.11% 30/185

Over the past year, the fund has achieved a remarkable return of 53.29%, significantly outperforming the broader market. 

Nippon India Nifty Midcap Index Fund – Portfolio Composition

The fund’s portfolio is exclusively composed of equity investments, reflecting a 100% allocation to stocks as of the latest update.

 This focus on equity positions aligns with the fund’s strategy to replicate the Nifty Midcap 150 Index. The fund size stands at ₹1269.37 crore, representing 0.57% of the total investment in its category.

Nippon India Nifty Midcap Index Fund – Sector Allocation

The sector allocation of the fund is designed to mirror the Nifty Midcap 150 Index, providing diversified exposure across various industries. Typical Nifty Midcap 150 Index sectors include financial services, industrial manufacturing, consumer goods, healthcare, and information technology.

Nippon India Nifty Midcap Index Fund – Risk Ratios

The fund’s risk ratios indicate a higher level of volatility but also better risk-adjusted returns compared to its peers:

  • Standard Deviation: 13.74 (Category Avg: 12.36)
  • Beta: 0.99 (Category Avg: 0.86)
  • Sharpe Ratio: 1.34 (Category Avg: 0.59)
  • Treynor’s Ratio: 0.19 (Category Avg: -0.21)
  • Jensen’s Alpha: -0.92 (Category Avg: -0.53)

The higher standard deviation and beta suggest that the fund is more volatile than the average in its category. However, the Sharpe and Treynor ratios demonstrate superior risk-adjusted returns, indicating that the fund efficiently compensates for the risks taken. Despite a lower Jensen’s Alpha, the fund’s overall performance remains strong, particularly in delivering higher returns relative to the market risk.

Suitability

The fund offers exposure to mid-sized companies with high growth potential with its passive investment strategy. Given its historical performance, higher risk-adjusted returns, and diversified sector exposure, this fund is well-suited for investors with a long-term investment horizon and a higher risk tolerance, looking to benefit from the dynamic growth opportunities in the mid-cap segment.

Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered as investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.