Navi AMC rolls out Nifty MidSmallcap 400 index fund to give diversified exposure to mid- and small-cap companies

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

The New Fund Offer (NFO) has opened on November 24, 2025 and will close on December 5, 2025.

The Nifty MidSmallcap 400 Index tracks how mid-sized and small-sized companies perform in the Indian market. It includes all firms that are part of the Nifty Midcap 150 and Nifty Smallcap 250, and it is calculated using the free-float market capitalisation method, meaning the index value reflects the total market value of freely traded shares. As of 31 October 2025, the index had 402 companies, with financial services, capital goods and healthcare being the biggest sectors. According to the NSE factsheet, the index is reviewed twice a year and is often used for benchmarking portfolios or creating index funds and ETFs

The Scheme will replicate 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.

Aditya Mulki, CEO, Navi AMC Limited, 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 index. Our focus is on creating transparent, rules-based products that help investors build long-term wealth without complexity.”

According to the Navi press release, the investment objective of the Scheme is to generate returns that are commensurate with the performance of the Nifty MidSmallcap 400 Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realised.

In terms of performance, the index has delivered strong returns. The total return for the past one year was 28.81%, while the five-year CAGR stood at 17.10%. Since inception, the total returns index has delivered 4.43% CAGR. The factsheet also shows shorter-term numbers: 3.22% YTD and 2.33% quarter-to-date. These figures highlight the index’s ability to capture growth opportunities in the mid- and small-cap space, although it also shows higher volatility, with a standard deviation of 20.91% over five years.