Kolkata : TRUST Mutual Fund has announced the launch of the TRUST Mid Cap Fund, an open-ended equity scheme predominantly investing in mid-cap companies. The fund seeks to generate long-term capital appreciation by investing in equity and equity-related instruments of businesses ranked 101st to 250th in terms of full market capitalization, as defined by SEBI. The scheme will be benchmarked against the Nifty Midcap 150 TRI. The New Fund Offer (NFO) will open for subscription from 27th February 2026 and close on 13th March 2026.
Mid-cap companies represent a distinctive stage in the corporate lifecycle- enterprises that have generally moved beyond early uncertainty and are positioned for scalable expansion. Mid-caps in India have a market capitalisation of Rs.34.8K to 104.5K Crore*(Source-AMFI, Data as of Dec 2025). Many segment leaders are only available in the mid-cap universe across digital platforms, manufacturing, financial services, infrastructure, retail and niche consumption categories, several category-defining businesses currently reside in this space, offering investors exposure to companies before they transition into large-cap status.
India’s mid-cap segment continues to be one of the powerful engines of long-term wealth creation. In the last 5 years alone, 37 mid-caps have delivered greater than 3x returns, displaying the incredible opportunity for investors to generate high medium to long term returns.
Multi-baggers are internally defined as – stocks that have provided a return of at least 100%. (Source: Capitaline, Kotak Institutional Equities).Mid cap segment has also demonstrated relatively stronger earnings momentum in recent quarters, supported by healthy Profit After Tax (PAT) growth. Mid-cap valuations have moderated from peak levels and are now closer to long-term averages, while earnings growth expectations remain constructive.
Nifty Mid-cap 150 TRI has outperformed both the Large-cap Nifty 100 TRI and Small-cap 250 TRI indices over a 15-year period. This demonstrates the strong long-term fundamentals of mid-caps.
The mid-cap universe is supported by broader structural drivers shaping India’s growth trajectory. Stable inflation trends, a controlled current account deficit, sustained capital expenditure, and favourable demographics together provide a supportive macroeconomic backdrop. Mid-sized businesses, with diversified sector representation spanning financial services, consumer discretionary, industrials, healthcare and digital-led enterprises, are well positioned to benefit from rising domestic consumption, manufacturing expansion, financialization of savings, digitization, and export competitiveness.
Commenting on the launch Sandeep Bagla, Chief Executive Officer, TRUST MF, said, “Growth investing is central to our philosophy. In the mid-cap universe, outcomes can vary significantly, making research depth and valuation discipline especially important. Our investment process combines fundamental analysis, relative valuation and Terminal Value Investing* to identify businesses that can create sustainable long-term value.”
Mid-caps have delivered sizeable returns over the long-term period with Rs.10K turning to Rs.2.83 Lakhs in a 20-year period. At current valuations, mid-caps hold strong return potential for the future.
Mihir Vora, Chief Investment Officer, TRUST MF, added, “Mid-caps fit naturally within our Terminal Value Investing framework. These companies typically have established business models and a long runway for growth. Our approach focuses on identifying scalable businesses with strong leadership, competitive advantages and alignment with structural megatrends. Given the relatively lower research coverage in the mid-cap space compared to large caps, disciplined stock selection becomes critical.”
Aakash Manghani, Fund Manager, said – Equities, TRUST Mutual Fund, said, “Mid-cap investing demands strong bottom-up research and sharp execution focus. We are looking for companies that are gaining market share, improving operating efficiencies and demonstrating consistent earnings delivery. By maintaining valuation discipline and focusing on quality growth businesses, we aim to build a resilient portfolio positioned to benefit from India’s next phase of expansion.”
The TRUSTMF Mid Cap Fund will be managed in line with TRUST Mutual Fund’s core investment philosophy of Growth at Reasonable Valuations (GARV) and Terminal Value Investing. The investment team applies the LIM framework — Leadership, Intangibles and Megatrends — to evaluate companies with durable competitive positioning, scalable models and structural growth alignment.
The TRUSTMF Mid Cap Fund is suitable for:
· Investors with a high-risk appetite who can withstand short-term volatility.
· Long-term investors with a minimum investment horizon of five years.
· SIP-oriented investors seeking disciplined exposure to mid-caps.
· Investors looking to diversify portfolios with dedicated mid-cap allocation.
· Fundamental investors seeking participation in emerging businesses before they become large cap companies.
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