ABSL Nifty Midcap 150 Index Fund
• It is an open-ended scheme tracking the NIFTY Midcap 150 Index. The fund’s objective is to provide returns that closely correspond to the total returns of securities as represented by Nifty Midcap 150 Index, subject to tracking errors.
• The scheme offers investors access to a diverse portfolio of all 150 high growth companies that comprise the mid cap universe.
• This scheme follows a passive management strategy, altering its portfolio composition only when there is a change in the constituents of the underlying index.
ABSL Nifty Smallcap 50 Index Fund
• It is an open-ended scheme tracking the NIFTY Small cap 50 Index. The fund’s objective is to provide returns that closely correspond to the total returns of securities as represented by Nifty Small cap 50 Index, subject to tracking errors.
• The scheme offers investors exposure to a selection of 50 small cap stocks out of a universe of 250 stocks.
• The scheme’s passive management strategy tracking the top small cap 50 companies, lends a combination of focus yet diversification with liquidity to the portfolio.
Why Mid and Small cap Index funds?
The economy today has begun its upward recovery from a year of negative growth induced by the pandemic. Growth drivers such as substantial policy reforms, the make in India regime and low interest rates, set up the market for a phase of recovery. This could be an opportune time for mid and small caps to shine. Mid and small caps are growing companies that may be suited to capitalise on incentives and an environment of economic recovery to flourish. An investor, especially a beginner looking to capitalise on the growth opportunity presented by these companies can look towards index funds.
Index funds are mutual funds that seek to mimic the performance of an underlying index by investing in the same stocks, in the same proportion of the index it tracks. These funds follow a passive management strategy, minimising the risk of active stock selection. Index funds that track the mid and small cap index are a simple and effective way of participating in mid and small cap companies without the need for expertise in stock selection.