What is Bajaj Allianz Life Midcap Index Fund?
Bajaj Allianz Life Midcap Index Fund is a newly launched New Fund Offering (NFO) provided by Bajaj Allianz Life. It is a mid-cap fund, meaning that it invests in mid-sized companies in India. The objective of this new Bajaj Allianz Midcap NFO is to provide capital appreciation by tracking the performance of the Nifty Midcap 150 Index.
In terms of asset allocation, the Bajaj Allianz Midcap Index Fund predominantly invests in equity and equity-related instruments, with an allocation range of 65% to 100%. This allows the fund to tap into the growth potential of mid-cap stocks, which are often characterized by their potential for higher returns compared to large-cap stocks. The remaining 0% to 35% of the Bajaj Allianz new fund portfolio may be allocated to cash, bank deposits, liquid mutual funds^^, and money market instruments. This allocation provides this Bajaj Mid Cap Index fund with the necessary liquidity to meet redemption requests and manage the portfolio effectively.
Highlights of Bajaj Allianz Life Midcap Index Fund
| Aspect |
Details |
| Investment Objective |
To provide capital appreciation through investment in equities forming part of the Nifty Midcap 150 Index. |
| Benchmark Index |
Nifty Mid Cap 150 Index |
| Risk Profile |
High |
| NFO Launch Period |
15 - 28 November 2023 |
| Net Asset Value (NAV) |
NAV starts @ ₹10 |
| Minimum Investment |
₹1,800/month* |
*If buying Bajaj Allianz Life Capital Guarantee Plan
What is the Nifty Midcap 150 Index?
The Nifty Midcap 150 Index is a stock market index managed by the National Stock Exchange of India (NSE). It represents the performance of the mid-cap segment of the Indian stock market. The index is composed of 150 mid-cap companies that are ranked 101st to 250th based on full market capitalization from the list of companies on the Nifty 500 Index.
The Nifty Midcap 150 Index is designed to reflect the behavior and performance of the mid-cap segment of the financial market. Mid-cap companies are typically those with a market capitalization that is in the middle range of the market, and they are considered to have higher growth potential compared to large-cap companies.
The index is calculated using free float market capitalization weighted methodology, where the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The Nifty Mid Cap 150 index is reconstituted semi-annually to ensure that it remains representative of the mid-cap segment of the market.
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Performance of Nifty Midcap 150 Index vs Other Indices
The Nifty Midcap 150 Index has shown great performance compared to other indices, and it looks set to bring in strong returns that can really help build your wealth.
Following is the performance of the Nifty MidCap 150 Index over the years with other indices:
| As on 29th Feb 2024 |
1 Years |
5 Years |
10 Years |
RSI |
| Nifty MidCap 150 Index |
57.28% |
25.45% |
21.21% |
17.87% |
| Nifty 50 Index |
28.49% |
16.66% |
13.10% |
11.52% |
[Source: nseindia.com]
*RSI: Returns Since Inception
Over the past decade, the Nifty Midcap 150 Index has significantly surpassed the Nifty 50 Index in terms of performance.
If you had invested Rs. 100 in the Nifty Midcap 150 Index 10 years ago, your investment would have achieved a Compound Annual Growth Rate (CAGR) of 21.21%.
People also read: Bajaj Allianz Life Small Cap Quality Index Fund
Which are the Constituent Stocks of the Nifty Midcap 150 Index by Weightage?
The top 10 stocks, as of 13 March 2024, for the Nifty MidCap 150 Index are as follows:
| Name of company |
Weight (%) |
| Max Healthcare Institute Ltd |
2.16 |
| Power Finance Corporation Ltd |
2.15 |
| REC Ltd |
2.02 |
| Adani Power Ltd |
1.96 |
| Indian Hotels Co Ltd |
1.9 |
| Persistent Systems Ltd |
1.64 |
| Yes Bank Ltd |
1.58 |
| Coforge Ltd |
1.48 |
| Lupin Ltd |
1.44 |
| HDFC Asset Management Company Ltd |
1.39 |
[Source: nseindia.com]
Sectoral Representation of Nifty Midcap 150 Index by Weightage
Here is the sectoral representation of the Nifty Midcap 150 Index as of 13 March 2024, by weightage:
[Source: nseindia.com]
As of Mar 13, 2024, the Financial Services sector holds the highest weight in the index, making up approximately 22.70% of its composition. On the other hand, the Nifty Midcap 150 Index has the least exposure to construction stocks, which represent just about 0.51% of the index.
What Are the Returns of Nifty Midcap 150 Index Over the Years?
Below are the returns of this index:
| Investment Period |
Price Returns (%) |
Total Returns |
| 1 year |
56.26% |
57.28% |
| 5 year |
24.37% |
25.45% |
| Since Inception |
16.44% |
17.87% |
[Source: nseindia.com]
Why is Midcap Index Fund a Smart Investment Option?
The Nifty Midcap Index Fund can be a smart investment option for a variety of reasons. Here are some of the key factors that make it an attractive choice:
-
Exposure to the Indian Economy: Mid-cap companies are more focused on the Indian economy, which is aiming to become the 3rd largest by 2027, and less affected by global economic volatility.
-
Growth Potential: Mid-cap companies are growing faster than large-cap ones. The Nifty Midcap 150 index has delivered an annual average return of 17.87%.
-
Diversification: The Nifty Midcap 150 index is diversified across various sectors, reducing risk.
-
Power of Compounding: Investing in a Nifty Midcap Index Fund allows investors to take advantage of compounding, growing their wealth over the long term.
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Why are Mid Cap Funds Better than Large Cap Funds?
Mid-cap funds can be a better choice than large-cap funds for several reasons like:
-
Diversified Sector Exposure: Mid-cap funds offer more diversified sector exposure, reducing risk by minimizing the impact of poor performance in any single sector.
-
Domestic Growth Focus: These funds often have greater exposure to sectors that benefit from domestic growth, positioning investors to capitalize on India's expanding economy without being overly reliant on global market trends.
-
Consumption and Investment Cycle: Mid-cap funds are an effective way to tap into India's consumption and investment cycles, as they tend to include companies that stand to gain from increased consumer spending and government-led infrastructure initiatives.
Who Should Invest in Bajaj Allianz Life Midcap Index Fund?
The Bajaj Allianz Life Midcap Index Fund, like any other midcap index fund, is suitable for a range of investors:
-
Long-Term Investors: Those looking to build wealth over the long term can benefit from the growth potential of mid-cap stocks.
-
Risk-Tolerant Investors: Mid-cap stocks can be more volatile than large-cap stocks, so Bajaj Allianz Mid Cap Index Fund is suitable for investors who are willing to tolerate some degree of risk in exchange for potentially higher returns.
-
Diversification Seekers: Investors looking to diversify their portfolio can benefit from the wide range of sectors and companies included in the Bajaj Nifty Midcap 150 index Fund.
-
Passive Investors: Those who prefer a hands-off approach to investing can benefit from the passive nature of the Bajaj Allianz Life Midcap Index Fund, where the fund manager doesn’t actively pick stocks but instead tracks an index.
-
Investors Seeking Exposure to the Indian Economy: As mid-cap companies are often more focused on the Indian market, this Bajaj Allianz Mid Cap Index Fund is suitable for investors seeking exposure to the growth potential of the Indian economy.
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What are the Benefits of Purchasing the Bajaj Allianz Life Midcap Index Fund from Policybazaar?
Opting to invest in Bajaj Allianz Life Midcap Index Fund via Policybazaar brings a host of valuable advantages:
-
Convenience: Policybazaar enables online investment in Bajaj Allianz Life Midcap Index Fund, saving you the hassle of physical visits to banks or insurance agents.
-
Comparison: The platform offers a comprehensive comparison of various plans, including new funds, ensuring you have all the necessary data to make an informed choice and secure the most favorable deal in the market.
-
Professional Advice: Policybazaar is equipped with a team of financial experts who are there to assist you in selecting the most appropriate NFO plan tailored to your specific needs and financial aspirations.
-
Expert Visit at Your Home: Experience personalized and expert advice from the comfort of your home, as PolicyBazaar's knowledgeable experts visit you to provide tailored solutions for all your insurance needs.
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Tax Benefits: Investing in the Bajaj Allianz Life Midcap Index Fund through Policybazaar can result in tax savings. The platform assists you in understanding and leveraging potential tax benefits to optimize your financial strategy.
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Easy Redemption: When redeeming your NFO investment, Policybazaar provides a seamless process, subject to the terms and conditions specified in the NFO agreement.
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How to Buy Bajaj Allianz Life Midcap Index Fund from Policybazaar?
To purchase the Bajaj Allianz Life Midcap Index Fund from Policybazaar, please follow these steps:
Step 1: Navigate to the Policybazaar website or open the Policybazaar app. If you don't already have an account, you can either log in or create a new one.
Step 2: Once you are logged in, you will just need to enter your name and contact numbers.
Step 3: Next, you will be shown a list of available Bajaj Allianz Life Plans. From this list, select the plan with Bajaj Allianz Life Midcap Index Fund that best fits your requirements. The investment options include:
-
Bajaj Allianz Capital Guarantee Solution
-
Bajaj Allianz Invest Protect Goal
-
Bajaj Allianz Smart Wealth Goal II
-
Bajaj Allianz Goal Assure II
-
Bajaj Allianz Goal Suraksha
-
Bajaj Allianz Future Wealth Gain II
-
Bajaj Allianz Future Gain II
-
Bajaj Allianz LongLife Goal Plan
Step 4: If you are interested in the Bajaj Allianz Life Mid Cap Index Fund, click on the "Get Details" tab for more information. You can also receive a FREE consultation from an expert by clicking the "talk to expert" button.
Step 5: Carefully review the details of the plan. Once you are satisfied, click on the "Proceed" button and follow the on-screen prompts to continue with your purchase.
Step 6: You will then be asked to enter the necessary details and specify the amount you wish to invest. Choose your preferred payment method.
Step 7: Next, provide your KYC (Know Your Customer) details as required for regulatory compliance.
Step 8: Finally, complete the payment process. Once your payment is successful, you will receive confirmation of your purchase.
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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