Nippon Nifty Midcap 150 ETF

About Nippon India ETF Nifty Midcap 150

• The MID150BEES or Nippon India ETF Nifty Midcap 150 is an open-ended scheme that aims to track the performance of the Nifty Midcap 150 Index.
• This index includes 150 midcap stocks listed on the NSE of India, representing a range of sectors and industries.
• The MID150BEES ETF is managed by Nippon India management company.
• Nippon India ETF Nifty Midcap 150 was launched on January 31, 2019.
• The total assets under management of the ETF stood at ₹1,840 crore as of July 31, 2024.
• Himanshu Mange is the fund manager of Nippon India ETF Nifty Midcap 150.
• The ETF units are listed on both NSE and BSE. Retail investors can buy units through a broker and can also buy directly from the demat account of their choice.

Investment Objective & Benchmark

• The objective of Nippon India ETF Nifty Midcap 150 is to mirror the performance of the Nifty Midcap 150 Index providing investors with exposure to a diversified portfolio of midcap stocks in India.
• The ETF is benchmarked against the Midcap 150 Index TRI.
• The ETF tracks a broad index, with stakes in technology, pharmaceuticals, financial services and consumer goods offering sectoral diversification.
• The index includes 150 midcap businesses with market capitalisations ranging from the lower 50th to 75th percentile of all listed equities.
• The ETF offers diverse exposure to midcap stocks which have better growth rates than large-cap corporations. However, midcap stocks are more volatile and risky.
• The ETF brings a unique way for investors to gain access to midcap companies, which can offer potential growth opportunities while also diversifying your investment beyond large-cap stocks.
• Nippon India ETF Nifty Midcap 150 may be excellent for investors wishing to diversify their portfolio with midcap stocks, which have the potential for stronger growth than large-cap stocks but are more volatile.

Asset allocation and Portfolio Composition

• The ETF invests in companies across market capitalisations around 3.91% in giant cap, 15.46% in large cap, 73.76% in mid-cap and 6.87% in small cap.
• The fund allocation of Nippon India ETF Nifty Midcap 150 comprises 99.85% in equity and 0.15% in cash and cash equivalent.

Sector-wise allocation of funds comprises:

• Industrial Products: 8.02%
• Auto Components: 7.96%
• Banks: 7.64%
• Pharmaceuticals & Biotechnology: 6.98%
• IT - Software: 5.79%
• Electrical Equipment: 5.33%
• Realty: 4.54%
• Finance: 4.53%
• Consumer Durables: 3.88%
• Healthcare Services: 3.54%

Top 10 holding of stocks comprises around 15.78% of ETF:

• Suzlon Energy Limited: 2.17%
• Max Healthcare Institute Limited: 2.01%
• The Indian Hotels Company Limited: 1.64%
• Cummins India Limited: 1.54%
• Persistent Systems Limited: 1.49%
• Yes Bank Limited: 1.42%
• Federal Bank Limited: 1.41%
• CG Power and Industrial Solutions Limited: 1.39%
• Lupin Limited: 1.36%
• Dixon Technologies (India) Limited: 1.35%

Since its inception, the Nippon India ETF Nifty Midcap 150 has given an annualised return of 27.04%.
In a single year, the ETF has given a return of 55.08% compared to its benchmarked index’s 55.35%.