We considered the passive mid cap schemes that are benchmarked against Nifty Midcap 50 – TRI, Nifty Midcap 150 – TRI, NIFTY Midcap150 Quality 50 – TRI, and Nifty Midcap150 Momentum 50 – TRI. These benchmarks gave 51.42%, 44.61%, 28.72%, and 52.48% respectively. These mid cap index schemes offered around 27-49% in 2023. The underperformance 1.06-3.83%. (See table) We considered the regular and growth options.
Edelweiss Nifty Midcap150 Momentum 50 Index Fund, the topper in the category, offered 49.25%. However, its benchmark (Nifty Midcap150 Momentum 50 – TRI) offered around 52.48% in 2023.
Axis Nifty Midcap 50 Index Fund offered 48.95%, compared to 51.42% by its benchmark (Nifty Midcap 50 – TRI).
Motilal Oswal Nifty Midcap 150 Index Fund, the largest passive mid cap scheme based on assets managed, gave 43.25% compared to 44.61% by its benchmark (Nifty Midcap 150 – TRI). The scheme manages assets of Rs 1,248.07 crore.
ICICI Prudential Nifty Midcap 150 Index Fund offered 42.63% against 44.61% by its benchmark (Nifty Midcap 150 – TRI).Nine mid cap index schemes have offered more than 40% in 2023. Two schemes have offered approximately 27%. However, the benchmark indices offered higher returns (1-3% extra) in 2023.Note, the above exercise is not a recommendation. The purpose of the exercise was to see how passively-managed mid cap schemes performed in 2023.
One should not make investment or redemption decisions based on this exercise.
