Nifty LargeMidcap 250 Index Fund
A Nifty LargeMidcap 250 Index Fund is a passive mutual fund scheme tracking the Nifty LargeMidcap 250 Index, comprising the top 100 large-cap Indian companies (Nifty 100) and the top 150 mid-cap companies (Nifty Midcap 150), with the index typically constructed in a 50-50 weight allocation between the two segments. The index is maintained by NSE Indices Limited.
For Indian retail investors, Nifty LargeMidcap 250 Index Funds offer:
- Single-fund balanced large-mid exposure: 50 per cent large-cap stability + 50 per cent mid-cap growth.
- Operational simplicity: One scheme instead of separate Nifty 100 + Nifty Midcap 150.
- Low TER: 0.30-0.50 per cent annually.
- Equity-oriented tax treatment: 12.5% LTCG advantage.
This article covers the index methodology, the major schemes, the role as balanced large-mid allocation, and the comparison with separate large-cap and mid-cap funds.
Index methodology
Composition
The Nifty LargeMidcap 250 Index comprises:
- Top 100 large-cap companies by free-float market cap (same as Nifty 100).
- Top 150 mid-cap companies by free-float market cap (101st to 250th, same as Nifty Midcap 150).
Weighting
The index uses a 50:50 weight allocation between large-cap and mid-cap segments. Within each segment, free-float market-cap weighting applies with appropriate caps.
Rebalancing
- Semi-annual rebalancing: March and September.
- Constituent reviews: Per the Nifty 100 and Nifty Midcap 150 frameworks.
- Weight rebalancing: To maintain 50-50 large-mid allocation.
Major schemes
- Motilal Oswal Nifty LargeMidcap 250 Index Fund.
- HDFC Nifty LargeMidcap 250 Index Fund.
- ICICI Prudential Nifty LargeMidcap 250 Index Fund.
- Nippon India Nifty LargeMidcap 250 Index Fund.
- Zerodha Nifty LargeMidcap 250 Index Fund (from Zerodha Fund House ).
The category is growing as retail investors seek single-fund balanced equity exposure.
Role as balanced allocation
Use cases
Nifty LargeMidcap 250 Index Funds suit:
- Investors wanting single-fund equity exposure: One scheme covering large + mid cap.
- Conservative-moderate investors: Mid-cap exposure balanced by large-cap stability.
- Long-term wealth building: 10+ year horizons benefit from the combined exposure.
Comparison with separate Nifty 100 + Midcap 150
| Dimension | Nifty LargeMidcap 250 | Separate Nifty 100 + Midcap 150 |
|---|---|---|
| Operational complexity | Single fund | Two funds |
| Allocation control | Fixed 50:50 | Flexible (e.g., 70:30) |
| Rebalancing | Automatic | Manual investor effort |
| TER | Single TER | Two TERs (similar combined) |
| Tax events | Single redemption | Two separate redemptions |
For investors wanting fixed 50-50 allocation, the LargeMidcap 250 is operationally simpler. For investors wanting custom allocation, separate funds provide flexibility.
Comparison with active large-mid cap funds
| Dimension | Nifty LargeMidcap 250 Index Fund | Active Large and Mid Cap Fund |
|---|---|---|
| Underlying | 250 stocks | Manager-selected ~50-100 stocks |
| TER | 0.30-0.50% | 1.50-2.00% |
| Manager risk | None | Significant |
| Performance | Index-tracking | Variable |
Tax treatment
Nifty LargeMidcap 250 Index Funds are equity-oriented :
- LTCG (>12 months): 12.5 per cent above Rs 1.25 lakh annual exemption under Section 112A .
- STCG (≤12 months): 20 per cent under Section 111A .
See also
- Mutual funds in India
- Index fund India
- Nifty 50 Index Fund
- Nifty 100 Index Fund
- Nifty Next 50 Index Fund
- Nifty Midcap 150 Index Fund
- Nifty Smallcap 250 Index Fund
- Sensex Index Fund
- Large and Mid Cap Mutual Fund
- Active vs passive equity in India
- Equity mutual fund taxation
- Zerodha Fund House
External references
References
- NSE Indices Limited Nifty LargeMidcap 250 methodology.
- SEBI (Mutual Funds) Regulations 1996.
- AMFI scheme data.