A Nifty Midcap 150 index fund is a passive mutual fund that buys the 150 companies in the Nifty Midcap 150 index in the same proportions, so its return is the index return minus costs. Over the five years to 30 September 2026 the index’s total return was 14.76% a year, and the cheapest funds tracking it charged well under 0.5% a year, though the index has also fallen more than 40% twice since 2005.
This article explains how the index is built and rebalanced, its long-term returns, crashes and current P/E, and then compares the index funds and ETFs on cost, tracking, size and trading liquidity. It closes with the passive vs active evidence for mid-caps, who these funds suit and how they are taxed.
What the Nifty Midcap 150 index is
NSE Indices builds the Nifty Midcap 150 from the Nifty 500. It takes the companies ranked 101 to 250 by full market capitalisation, which matches SEBI’s definition of a mid-cap company. Inside the index, each stock is weighted by free-float market cap, meaning only the shares available for public trading count, not promoter holdings.
Rebalancing rules
- Twice a year: the index is reviewed using six-month average data with cut-off dates of 31 January and 31 July. Changes take effect at the end of March and September, with four weeks’ notice.
- Buffers to limit churn: a new stock is added if it ranks in the top 225 by full market cap, and an existing one is removed only if it falls below rank 275 or drops out of the Nifty 500.
- Base: 1 April 2005 at 1,000. The index was launched on 1 April 2016, so earlier figures are back-calculated.
Stocks that grow into the top 100 move to the large-cap indices, and stocks that shrink move to small-caps. This automatic churn is the main thing an index fund does for you: it sells companies that have outgrown the mid-cap band without anyone having to make a call.
What it holds (as of 30 September 2026)
Financial services was the largest sector at 26.75%, followed by healthcare (11.20%) and capital goods (10.82%). Information technology was only 4.64%. The biggest single stock, Multi Commodity Exchange of India, was just 2.07% of the index, followed by Federal Bank (1.93%) and Laurus Labs (1.90%), so no one company dominates.
Returns, drawdowns and the current P/E
Long-term returns
NSE’s factsheet dated 30 September 2026 shows these returns. The total return index (TRI) includes reinvested dividends and is the fair benchmark for a fund.
| Period to 30 Sep 2026 | Price return | Total return (TRI) |
|---|---|---|
| 1 year | 3.94% | 4.57% |
| 5 years (a year) | 13.99% | 14.76% |
| Since April 2005 (a year) | 15.42% | 16.75% |
Source: NSE Indices, Nifty Midcap 150 factsheet, 30 September 2026. Returns above one year are annualised (CAGR).
The drawdowns you must be ready for
That long-term return came with deep falls. According to an NSE Indices paper on the index, its maximum drawdown (peak-to-trough fall) was 71.7% during the 2008-09 global financial crisis, against 61.1% for the Nifty 100. In the Covid sell-off of early 2020 it fell 43.1%. In calendar 2018 it returned −12.6%.
More recently, using AMFI NAVs of the Motilal Oswal index fund as a stand-in, the index fell about 21% between 24 September 2024 and 28 February 2025, and about 7% in September 2026 alone. If a 40% fall would make you sell, a mid-cap index fund is the wrong product for that part of your money. Our explainer on what counts as a stock market crash puts these numbers in context.
Nifty Midcap 150 P/E ratio
The index’s P/E ratio was 28.40 on 30 September 2026, with a price-to-book of 3.83 and a dividend yield of 0.71%, according to NSE. Third-party trackers that store NSE’s daily data put the index’s P/E in the mid-40s at its 2024 peak, so valuations have cooled, but a P/E of about 28 is still not cheap in absolute terms. Treat P/E as a guide to how much patience you may need, not as a timing signal.
Nifty Midcap 150 index funds compared
Since 1 April 2026, SEBI’s new mutual fund rules split costs into a base expense ratio (BER, the fund’s own fee) plus brokerage and statutory levies such as GST, which together make up the total expense ratio (TER). The table shows both for the direct growth plan. Tracking difference is the fund’s one-year return minus the TRI’s 14.13% for the year to 31 August 2026. It is the most practical measure of how much a fund really lost to costs and cash drag.
| Index fund (direct) | Launched | AUM (₹ cr) | BER | Total TER | 1-yr return | Tracking difference |
|---|---|---|---|---|---|---|
| Motilal Oswal Nifty Midcap 150 | Sep 2019 | 4,151 | 0.23% | 0.35% | 13.90% | −0.23% |
| Nippon India Nifty Midcap 150 | Feb 2021 | 2,845 | 0.25% | 0.37% | 13.82% | −0.31% |
| ICICI Prudential Nifty Midcap 150 | Dec 2021 | 1,328 | 0.22% | 0.35% | 13.79% | −0.34% |
| SBI Nifty Midcap 150 | Oct 2022 | 1,292 | 0.34% | 0.47% | 13.77% | −0.36% |
| HDFC Nifty Midcap 150 | Apr 2023 | 726 | 0.23% | 0.34% | 13.64% | −0.49% |
| Aditya Birla SL Nifty Midcap 150 | Apr 2021 | 503 | 0.34% | 0.45% | 13.69% | −0.44% |
| Tata Nifty Midcap 150 | Jun 2025 | 332 | 0.11% | 0.23% | 13.67% | −0.46% |
Sources: AUM as of 31 August 2026 and BER/TER as of 30 September 2026 from Groww’s scheme data; one-year returns calculated from AMFI NAVs (29 August 2025 to 31 August 2026); TRI return from the Motilal Oswal AMC factsheet page. Motilal Oswal reports an annualised tracking error of 0.10% for its fund (31 August 2026).
Two points stand out. First, the gap between the best and worst fund was only about 0.26 percentage points in a year, so any large, established fund does the job. Second, the lowest fee did not give the smallest tracking difference: newer and smaller funds lose more to cash flows and trading costs. Tracking error, the variability of that daily gap, is a separate measure; lower is better, and all the large funds here report low figures.
Nifty Midcap 150 ETFs compared
An ETF holds the same stocks but trades on the exchange like a share, so you need a demat and trading account, and liquidity matters. If an ETF trades thinly, you may buy above or sell below its real value (the iNAV). Our guide to ETFs vs mutual funds covers the trade-offs in detail.
| ETF | NSE symbol | AUM (₹ cr) | TER | Tracking error | Median daily traded value, Sep 2026 (₹ cr) | 1-yr tracking difference |
|---|---|---|---|---|---|---|
| Nippon India ETF Nifty Midcap 150 | MID150BEES | 3,729 | 0.24% | 0.15% | 15.5 | −0.17% |
| Mirae Asset Nifty Midcap 150 ETF | MIDCAPETF | 1,874 | 0.12% | 0.09% | 5.6 | −0.03% |
| ICICI Prudential Nifty Midcap 150 ETF | MIDCAPIETF | 791 | 0.18% | 0.04% | 2.2 | −0.06% |
| Kotak Nifty Midcap 150 ETF | MID150 | 13 | 0.11% | 0.06% | 0.19 | −0.17% |
Sources: AUM, TER and tracking error from Tickertape (1 October 2026); traded value from NSE daily price and volume data for September 2026 via Groww; tracking difference from AMFI NAVs against the 14.13% TRI return for the year to 31 August 2026.
MID150BEES is by far the most traded, which usually means tighter bid-ask spreads. HDFC (HDFCMID150) and Zerodha (MID150CASE) also traded about ₹1 to 1.6 crore a day in September 2026, while several newer ETFs traded only a few lakh rupees a day. For a small investor, a low-priced unit with thin trading can cost more in spread than it saves in TER.
Is there a Motilal Oswal Nifty Midcap 150 ETF?
Not a plain one. AMFI’s scheme list shows Motilal Oswal’s mid-cap ETF tracks the Nifty Midcap 100, and it also runs a Nifty Midcap 150 Momentum 50 ETF, which is a factor strategy, not the full index. Its plain Midcap 150 product is the index fund in the table above. Similarly, Edelweiss offers a Midcap150 Momentum 50 index fund and Axis a Nifty Midcap 50 index fund, neither of which tracks the full 150-stock index.
Passive vs active mid-cap funds
Mid-caps are one category where good active managers have sometimes added value, so the evidence is more mixed than for large-caps. S&P Dow Jones Indices’ SPIVA India Mid-Year 2026 scorecard found that about 55% of Indian mid- and small-cap funds trailed their benchmark over five years, and about 82% over ten years. Picking one of the minority that beats the index, in advance, is the hard part.
Our own check using AMFI NAVs gives a closer view. Of 22 active mid-cap funds with a five-year record, 11 beat the Nifty Midcap 150 TRI’s 14.76% a year (direct plans, five years to 30 September 2026). Regular plans, which cost about 0.5 to 1 percentage point more a year, would show fewer winners, and funds that closed or merged are not counted. So picking an active fund is roughly a coin toss unless you have a good reason to expect a manager to keep beating the index.
If you prefer active management, our list of the best mid-cap mutual funds compares long-running options on returns, drawdowns and costs. Many investors split the difference: an index fund as the core of their mid-cap allocation, with one active fund beside it.
What costs add up to over time
Hypothetical example. Suppose Priya invests ₹10,00,000 for 15 years and the mid-cap market earns 13% a year before costs. In an index fund with a total TER of 0.35%, she earns about 12.65% a year: ₹10,00,000 × 1.1265^15 = ₹59.70 lakh. In a regular-plan active fund charging 1.7% that only matches the market before fees, she earns 11.3%: ₹10,00,000 × 1.113^15 = ₹49.82 lakh. The difference is about ₹9.88 lakh, purely from costs. An active fund has to beat the index by more than its extra fee just to break even. You can try your own numbers in our lumpsum calculator.
Who a Nifty Midcap 150 index fund suits
- Investors with a horizon of at least seven years who can sit through a 40% fall without selling.
- Those who already hold a large-cap or Nifty 50 fund and want low-cost mid-cap exposure alongside it, typically as a minority of their equity.
- SIP investors, since monthly buying spreads purchases across the index’s frequent swings.
- Anyone who does not want to judge fund managers or worry about style drift.
It does not suit money needed within three to five years, or investors who want lower volatility. How much to hold depends on your overall mix, so decide your split between large-, mid- and small-caps before you start.
How Nifty Midcap 150 funds and ETFs are taxed
Both index funds and ETFs on this index are equity-oriented funds. Gains on units held 12 months or less are short-term capital gains taxed at 20%. Gains on units held longer are long-term and taxed at 12.5% on the amount above ₹1.25 lakh in a financial year, with no indexation. Budget 2026 did not change these rates. Any IDCW (dividend) payout is taxed at your slab rate, so the growth option is usually more efficient.
Hypothetical example. Suppose Priya redeems units after three years with a long-term gain of ₹2,00,000 and has no other equity gains that year. Tax is (₹2,00,000 − ₹1,25,000) × 12.5% = ₹9,375, plus 4% cess = ₹9,750. Each SIP instalment has its own 12-month clock, so redeeming early SIP units first keeps more of the gain long-term.
Common mistakes
- Choosing on TER alone: check tracking difference and fund size too.
- Buying an illiquid ETF: a wide spread can cancel years of TER savings.
- Confusing similar names: Midcap 150, Midcap 100, Midcap 50 and “Momentum 50” or “Quality 50” funds are different products with different risk.
- Owning both an index fund and several active mid-cap funds: this often creates heavy overlap and higher average cost.
- Stopping SIPs after a fall: drawdowns are when SIPs buy the most units.
FAQ
Which is the best Nifty Midcap 150 index fund?
There is no single best one, because all track the same index. Large, older funds such as those from Motilal Oswal, Nippon India and ICICI Prudential had one-year tracking differences of about 0.23% to 0.34% to August 2026. Compare total TER, tracking difference and AUM on the latest factsheet.
What is the Nifty Midcap 150 P/E ratio today?
NSE’s factsheet showed a P/E of 28.40 on 30 September 2026, with a price-to-book of 3.83. NSE publishes the daily figure on niftyindices.com, so check it there for the latest value.
Index fund or ETF: which is better for Nifty Midcap 150?
Index funds are simpler for SIPs and need no demat account. ETFs can be cheaper, but only liquid ones such as MID150BEES or MIDCAPETF trade at fair prices. If you invest small amounts every month, an index fund is usually easier.
How is Nifty Midcap 150 different from Nifty Midcap 100?
The Midcap 150 covers all companies ranked 101 to 250, matching SEBI’s mid-cap band. The Midcap 100 is a narrower subset, so it is a little more concentrated. Returns are usually similar but not identical.
Is a Nifty Midcap 150 index fund good for SIP?
Yes, for long horizons. Most funds accept SIPs from ₹100 to ₹500 a month, and regular buying helps you through the index’s deep swings. Use our SIP calculator to estimate outcomes, but do not assume past returns will repeat.
Ramesh Iyer is the pen name of the founder and editor of StocksInfo.AI, an independent investor in Indian equities, mutual funds and ETFs since 2020. Every article is researched from primary sources such as SEBI, AMFI, NSE and the Income Tax Department, and fact-checked before publishing. About us