TRUST Mutual Fund Launches TRUSTMF Mid Cap Fund with an aim to Capture India’s Emerging Growth Leaders

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.

Source: Internal analysis, ACE equity Data base: AMFI’s market cap Classification as on 31st December 2025. Indices considered for representation purpose- Nifty 100 TRI (for Large Cap), Nifty Midcap 150 TRI (for Mid Cap). Index performance does not guarantee scheme performance. Past performance may or may not be sustained in future and is not a guarantee of any future return.

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.

Data as on 31st Dec 2025. Source: ICRA MFI Explorer; Internal Research. Indices considered for representation purpose. Nifty 100 TRI (Large cap), Nifty Midcap 150 TRI (Mid-caps) & Nifty smallcap250 TRI (Small cap). Past performance may or may not be sustained in future and is not a guarantee of any future return. Index performance does not guarantee scheme performance.

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.”

(The concepts of ‘Terminal Value Investing’ and ‘GARV’ explained herein describe the current investment approach / philosophy of TRUST AMC. The same is subject to change depending on market conditions and investment opportunities.)

Data as on 31st Dec 2025. Source: ICRA MFI Explorer; Internal Research. Indices considered for representation purpose. Nifty 100 TRI (Large cap), Nifty Midcap 150 TRI (Mid cap) & Nifty smallcap250 TRI (Small cap). Past performance may or may not be sustained in future and is not a guarantee of any future return. Index performance does not guarantee scheme performance. Data points are rebased at 10,000. Returns are compounded Annualised Growth Rate (CAGR)

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.