Kolkata | Sunday, 1 March 2026
TRUST Mutual Fund has announced the launch of the TRUSTMF Mid Cap Fund, an open-ended equity scheme aimed at tapping into India’s fast-growing mid-cap segment. The fund will predominantly invest in companies ranked 101st to 250th by full market capitalisation, as defined by Securities and Exchange Board of India (SEBI).
The New Fund Offer (NFO) opens for subscription on 27 February 2026 and closes on 13 March 2026. The scheme will be benchmarked against the Nifty Midcap 150 TRI.
Targeting India’s scalable growth stories
Mid-cap companies represent a crucial stage in the corporate lifecycle — businesses that have moved beyond early uncertainty and are positioned for scalable expansion. According to industry data, India’s mid-cap companies currently have a market capitalisation ranging between Rs 34,800 crore and Rs 1,04,500 crore (as of December 2025).
Several segment leaders across digital platforms, manufacturing, financial services, infrastructure, retail and niche consumption categories currently reside in the mid-cap universe, offering investors exposure to companies before they transition into large-cap status.
Over the past five years, 37 mid-cap stocks have delivered returns exceeding 3x, highlighting the wealth-creation potential of the segment. Over a 20-year period, an investment of Rs 10,000 in mid-caps would have grown to Rs 2.83 lakh, underlining the long-term compounding opportunity.
Notably, the Nifty Midcap 150 TRI has outperformed both the Nifty 100 TRI and the Nifty Smallcap 250 TRI over a 15-year period, demonstrating the segment’s strong fundamentals.
Supportive macro and structural drivers
India’s mid-cap growth story is further supported by stable inflation trends, a controlled current account deficit, sustained capital expenditure and favourable demographics. Rising domestic consumption, manufacturing expansion, financialisation of savings, digitisation and export competitiveness are expected to provide a strong tailwind for mid-sized enterprises.
Investment philosophy
Commenting on the launch, Sandeep Bagla, Chief Executive Officer, TRUST MF, said growth investing remains central to the fund house’s philosophy. “In the mid-cap universe, outcomes can vary significantly, making research depth and valuation discipline especially important. Our process combines fundamental analysis, relative valuation and Terminal Value Investing to identify businesses capable of sustainable long-term value creation,” he said.
Mihir Vora, Chief Investment Officer, added that mid-caps naturally align with the firm’s Terminal Value Investing framework, as these companies typically have established business models and long growth runways. He emphasised the importance of disciplined stock selection, especially given relatively lower research coverage in the mid-cap space compared to large caps.
Aakash Manghani, Fund Manager – Equities, noted that the strategy will focus on bottom-up research to identify companies gaining market share, improving operating efficiencies and delivering consistent earnings growth, while maintaining valuation discipline.
The TRUSTMF Mid Cap Fund will follow the fund house’s Growth at Reasonable Valuations (GARV) philosophy and apply the LIM framework — Leadership, Intangibles and Megatrends — to build a portfolio of quality growth businesses.
Who should invest?
The fund is suitable for:
- Investors with a high-risk appetite capable of handling short-term volatility
- Long-term investors with a minimum five-year investment horizon
- SIP-oriented investors seeking disciplined mid-cap exposure
- Those looking to diversify portfolios with a dedicated mid-cap allocation
- Investors aiming to participate in emerging businesses before they evolve into large-cap leaders
With mid-cap valuations moderating from peak levels and earnings growth momentum remaining constructive, the TRUSTMF Mid Cap Fund aims to position investors to benefit from India’s next phase of economic expansion.
