The scheme will invest in companies ranked 101st to 250th by full market capitalisation, in line with the market-cap classification defined by Securities and Exchange Board of India (SEBI). It will be benchmarked against the Nifty Midcap 150 TRI.
According to data cited by the fund house from the Association of Mutual Funds in India (AMFI), mid-cap companies had a market capitalisation range of ₹34,800 crore to ₹1,04,500 crore as of December 2025. The fund house said several segment leaders across sectors such as digital platforms, manufacturing, financial services, infrastructure, retail and consumption fall within the mid-cap universe.
The asset manager cited internal analysis and third-party databases to highlight historical performance trends in the segment. It said the Nifty Midcap 150 Total Return Index has outperformed the Nifty 100 TRI and the Nifty Smallcap 250 TRI over a 15-year period. It also noted that over a 20-year horizon, ₹10,000 invested in mid-caps would have grown to approximately ₹2.83 lakh, based on index data as of December 31, 2025.
The fund house added that past performance does not guarantee future returns and index performance may not be replicated by the scheme.
The launch comes at a time when mid-cap valuations have moderated from peak levels and earnings growth expectations remain constructive, according to the fund house’s internal research. It also pointed to broader macroeconomic factors such as stable inflation trends, controlled current account deficit and sustained capital expenditure as supportive of growth-oriented businesses.
Sandeep Bagla, Chief Executive Officer, TRUST Mutual Fund, said the fund will follow a growth-oriented investment approach that combines fundamental analysis and valuation discipline. Mihir Vora, Chief Investment Officer, said mid-cap companies often have established business models and scope for expansion, but require selective stock picking due to varying outcomes within the segment.
Aakash Manghani, Fund Manager – Equities, said the portfolio will focus on companies gaining market share and demonstrating earnings consistency.
The scheme will be managed under the fund house’s stated philosophy of Growth at Reasonable Valuations (GARV) and Terminal Value Investing, using its internal LIM framework that evaluates leadership, intangibles and alignment with structural trends.
The fund house said the scheme may be suitable for investors with a high risk appetite and a long-term investment horizon, including those seeking dedicated exposure to mid-cap stocks. As with all equity investments, returns are subject to market risks.
