Trust Mutual Fund has launched a new mid-cap equity scheme called TrustMF Midcap Fund. It is an open-ended fund that will mainly invest in shares of mid-cap companies.
The New Fund Offer (NFO) opened for investors on February 27 and will remain open until March 13.
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Investment Focus: Mid-Cap Companies
The scheme will invest in companies ranked 101st to 250th by market capitalization. Its benchmark index will be the Nifty Midcap 150 TRI.
According to AMFI data, as of December 2025, the market capitalization of mid-cap companies ranged between ₹34,800 crore and ₹1,04,500 crore.
Mid-Caps Have Shown Strong Long-Term Performance
Trust Mutual Fund said that mid-cap companies include leaders across sectors such as digital platforms, manufacturing, financial services, infrastructure, retail, and consumption.
Over a 15-year period, the Nifty Midcap 150 TRI has delivered better returns than both the Nifty 100 TRI and the Nifty Smallcap 250 TRI.
For example, an investment of ₹10,000 in mid-caps 20 years ago would have grown to about ₹2.38 lakh today.
However, the fund house also clarified that past performance of any mutual fund scheme does not guarantee future returns.
Valuation Decline and Market Opportunity
The fund has been launched at a time when the valuations of mid-cap stocks have declined significantly. Many of these stocks are trading well below their all-time highs.
Higher Risk but Long-Term Potential
Sandeep Bagla, CEO of Trust Mutual Fund, said the scheme will follow a growth-oriented investment strategy based on fundamental analysis and valuation discipline.
He added that the fund is suitable for investors who can take higher risk and want to build long-term wealth. Experts also note that mid-cap stocks generally move up and down more sharply than large-cap stocks.
Advice Before Investing
There are already several mid-cap mutual fund schemes available in the market, and investors can compare their past performance to estimate potential returns.
Investors should consult their financial advisors before investing in this NFO. If an investor’s portfolio does not include a mid-cap fund, they may consider adding this scheme.