SBI Nifty Midcap 150 Index Fund vs Tata Mid Cap Fund

Tata Mid Cap Fund is an actively managed mid cap fund scheme: a fund manager picks and weights the holdings, and charges a higher expense ratio for doing so. SBI Nifty Midcap 150 Index Fund does the opposite — it simply tracks NIFTY Midcap 150 and charges very little. This page settles the question that actually matters before you invest in either: over the periods we can measure, did the active fund earn its fee?

Both sides are compared on their official AMFI NAV history (direct plan, growth option) — the same daily data the fund houses publish. Using the index fund rather than the raw NIFTY Midcap 150 level is deliberate: a tracking fund's NAV already includes its expense ratio and tracking error, so this is the return an investor could genuinely have captured, not a theoretical index number nobody can buy.

Over the 3-year period Tata Mid Cap Fund beat its benchmark tracker: +20.43% annualised against +19.44% for SBI Nifty Midcap 150 Index Fund — an outperformance of about 0.99 percentage points a year. That is the active manager genuinely adding value over this window, after the fund's own costs.

In rupee terms, ₹1,00,000 invested 3 years ago would have become about ₹1,74,671 in Tata Mid Cap Fund and ₹1,70,380 in SBI Nifty Midcap 150 Index Fund — a difference of roughly ₹4,291 on a ₹1,00,000 investment. Scale that to the size of your actual SIP or lumpsum to see what the choice is worth to you.

The picture is mixed depending on the period you pick (3-year: +20.43% vs +19.44% · 1-year: +7.29% vs +9.30%). This is the usual pattern for active funds — leading over some stretches and lagging over others — and it is exactly why a single headline return is a poor basis for choosing.

Notably the active fund has been the calmer of the two: annualised volatility of 14.7% against 16.2% for the tracker. On worst falls, the deepest drawdown in our stored history is −21.2% for Tata Mid Cap Fund against −21.1% for SBI Nifty Midcap 150 Index Fund. Lower volatility than the index is unusual and often reflects a manager holding cash or defensive names.

One factor sits outside the returns above: cost. An index fund tracking NIFTY Midcap 150 typically charges a fraction of what an actively managed mid cap fund scheme does, and that difference is deducted every year whether the manager performs or not. Over a long holding period a persistent fee gap compounds into a meaningful sum, which is why an active fund needs to beat its benchmark by more than its extra cost simply to break even with the tracker.

Which to choose comes down to what you believe about the next decade rather than the last one. Index funds guarantee you the benchmark's return minus a small fee; active funds offer the possibility of more, with the risk of less and a higher certain cost. Use the growth chart above to see how each behaved through actual market cycles, and consider a SEBI-registered adviser before switching. This comparison is informational and is not investment advice.