Navi Mutual Fund Cheapest Midcap Index Fund: Should You Invest In It?

The newest Navi Mutual fund has been targeting an array of themes and lately has come up with the NFO of an index fund i.e. the cheapest in its category. Here is the fine print on the mutual fund and whether or not you should park your funds in the cheapest mid-cap index fund by the mutual fund house:

About the fund:Navi Nifty Midcap 150 Index Fund shall replicate the Nifty Midcap 150 index. The index comprises 150 companies (ranked 101-250) based on m-cap from the Nifty 500 index.

Fund Allocation

As per the fund's prospectus minimum equity allocation in the fund shall be 95%, while maximum 0-5% can be allocated to debt instruments.

Should you invest in Navi Nifty Midcap 150 Index fund?

At a low cost investors will get a chance to invest in some of the emerging names. Also in contrast to the Nifty 100 index, history suggests that the Nifty Midcap 150 index in the last several years. So, in any case if you already have good exposure in Nifty firms and want to diversify your portfolio you can certainly bet on the product. The index' 1, 5 and 10 years CAGR return as per Bloomberg are 46.1%, 18.7% and 19.6% respectively. Further, the total expense ratio at just 0.12% shall be a boon in the long run.

Disclaimer: Mutual fund investment is risky being market linked please consult your financial advisors, we are not professional financial advisors.