Navi AMC rolls out Nifty MidSmallcap 400 Index Fund; check key features

Navi AMC, a subsidiary of Navi (formerly Navi Technologies), has announced the launch of the Navi Nifty MidSmallcap 400 Index Fund, an open-ended index scheme designed to replicate and track the Nifty MidSmallcap 400 Index. The index represents the combined universe of mid-cap and small-cap companies within the broader Nifty 500.

 

The scheme will remain open for subscription till December 5, 2025. It aims to mirror the Nifty MidSmallcap 400 Total Return Index, a free-float market capitalisation-weighted index comprising 400 companies — 150 mid-cap and 250 small-cap stocks. The index is maintained and rebalanced as per the methodology prescribed by NSE Indices.

 

“The Scheme is being benchmarked against the Index mentioned above, since the composition of the Index is in line with the investment objective of the Scheme/Plan(s) and is most suited for comparing performance. It will also enable investors to arrive at a more informed judgement on the scheme’s performance,” Navi AMC said in Scheme Information Document (SID).

Investment objective

The primary objective of the scheme is to generate returns commensurate with the performance of the Nifty MidSmallcap 400 Index, subject to tracking errors, according to the SID. The fund house has clarified that there is no assurance that the objective will be realised.

Key features

NFO price: ₹10 per unit

 

Minimum application amount: ₹100 and in multiples of ₹1 thereafter (applicable only at the time of creating a new folio)

 

Minimum additional purchase: ₹100 and in multiples of ₹1 thereafter

 

Minimum redemption/Switch-out:

 

Redemption: ₹100, or 1 unit, or the remaining account balance, whichever is lower

 

Switch-out: ₹100 and in multiples of ₹1 thereafter

 

Exit Load: Nil

 

Aditya Mulki, CEO, Navi AMC, said, “Mid- and small-cap companies have been at the forefront of India’s growth story, yet accessing this segment in a diversified and cost-efficient manner has remained a challenge for many investors. With the Navi Nifty MidSmallcap 400 Index Fund, we are offering a simple way to participate in this opportunity through a single, broad-based exposure.”  According to the SID, the risk level for both the Scheme and its benchmark is classified as very high.

Who should invest?

According to the SID, this product is suitable for investors:

 

Seeking capital appreciation over the long term

 

Looking to invest in equity and equity-related securities covered by the Nifty MidSmallcap 400 Index

 

Wanting returns that correspond to the performance of the Nifty MidSmallcap 400 Index, subject to tracking error