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Prime Recommendation: An index to challenge midcap funds

For investors preferring to go the passive route, options were limited until recently. With the passive landscape changing now, it’s becoming increasingly possible to build a diversified portfolio using just passive strategies. And by this, we mean allocations to large-caps, multi-cap and even mid-cap and small-caps.

If you are a passive-only investor, you could simply stick to the options available. But at PrimeInvestor, we constantly watch for passive products that begin to challenge active funds.  In the large-cap space, the trend is very clear. In the mid-cap and small-cap space, active funds have usually had no trouble being to beat the indices. This, though, appears to be changing now – both due to fund performance and index options.

The index here is the Nifty Midcap 150 index. This is a relatively new index, sporting an April 2016 launch date. The index is constructed based on free-float market cap. It houses the 101st to 250th stock in terms of full market capitalisation – what SEBI defines as the stock universe for mid-cap funds.

  • The Nifty Midcap 150 is able to stay ahead of mid-cap funds with reasonable consistency in both 1-year periods and longer 3/5-year periods.
  • Its average returns across timeframes are better than the average for mid-cap fund category; i.e. many mid-cap funds have fallen behind the Nifty Midcap 150.
  • Several nifty midcap index fund are also finding it hard to match the Nifty Midcap 150 during upsides. However, funds have typically contained downsides very well, and fall much lesser than the index.
  • Holding the index is similar to holding the entire mid-cap universe. For investors keen on passive options, the Nifty Midcap 150 is a good route to mid-cap allocations. For other investors, the index still provides a good diversifier to counter the ups and downs mid-cap funds go through. This is especially true in the context of Indian midcap funds often falling by the wayside after a few years, requiring you to review and rejig your portfolio. In other words, a buy-and-hold-for-life midcap fund is hard to identify.

Holding the index is similar to holding the entire mid-cap universe. The index is constructed based on free-float market cap. It houses the 101st to 250th stock – what SEBI defines as the stock universe for mid-cap funds.

The index fund that mirrors the Nifty Midcap 150 is Motilal Oswal Nifty Midcap 150 index fund, and is part of our Prime Funds. This fund is new, being launched only in September 2019. It is also the only index fund to be tracking this index.

Index vs funds – performance

We haven’t gone too far back in time to look at performance. One, fund behaviour and the market was entirely different. Two, SEBI’s new category definitions came into force only in 2018 and to that extent, the Nifty Midcap index fund (Midcap 150) is a good proxy for the midcap space primarily owing to this definition. Three, funds across categories in the past have not faced difficulties in beating the market. The struggle is a more recent phenomenon.

Therefore, we considered rolling 1 year and 3 year returns in the past six-year period. On a 1-year rolling return in this period, the Midcap 150 TRI was able to beat mid-cap funds 60% of the time on an average. Looking at mid-cap funds individually, only 5 delivered returns better than the index with a high degree of consistency.

Stretching the timeframe to a 3-year rolling return in a six-year period, the Midcap 150 TRI beat out mid-cap funds 80% of the time. Even going farther back to an 8-year period of considering 5-year rolling return, the index still managed to beat mid-cap averages more than half the time.

The table shows the average of the Midcap 150 TRI’s returns across different timeframes against the average for the mid-cap category since Jan 1, 2015.

Then consider upside capture – that is, how much of an index’s upside a fund is able to capture. On this metric too, only about 4 in 10 funds rose higher than the Midcap 150 based on 1-year rolling return over the past 5 years.

Index vs funds – downsides and volatility

Though nifty midcap index fund faltered on upsides, they scored during market falls. In mid-caps, falls can be steep. Recovery in this segment also comes with lag after large-caps recover and therefore slumps can be hard. Containing falls is one aspect where mid-cap funds have done very well.

Mid-cap funds’ ability to keep a lid on losses shows up in return volatility; mid-cap funds are actually better than the Midcap 150 TRI on this count

Using the downside capture ratio, all mid-cap funds kept their losses less than the Midcap 150 TRI. On an average, the category captured about 96% of the Midcap 150’s fall based on 1-month market movements over the past 3 years. And that means, on corrections, the Midcap 150 is going to fare worse than your fund.

For example, the index is currently sporting a 9.75% loss. The mid-cap category, on the other hand, is down by 6.5%; many funds have even smaller losses. This ability to keep a lid on losses shows up in return volatility; mid-cap funds are actually better than the Midcap 150 TRI. Active funds in other categories are usually more volatile than their benchmarks.

But owing to general performance, the Midcap 150 still ekes out a better risk-adjusted return.

Quick facts on the Nifty Midcap 150

Index vs funds – suitability and usage

The Nifty Midcap Index Fund (Midcap 150), in a nutshell, has the ability to deliver better returns than most active mid-cap funds but is more volatile and can fall more. So who should use the fund and how?

  • For passive-only investors who want to build a portfolio using a variety of indices, the Midcap 150 is a good fit. The index offers exposure to the entire mid-cap range. It can be paired with large-cap indices such as the Nifty 50 or the Nifty 100 for a diversified portfolio. However, if your portfolio also contains the Nifty Next 50, note that your portfolio volatility is already going to be high. In such a case, allocate a smaller share to the Midcap 150.
  • Investors who are looking for a different option in the mid-cap space can also use the Midcap 100 index. Mid-cap funds follow a bottom up approach, hold a limited number of stocks, and have higher concentration in individual stocks. The Midcap 150 index is different from these and to this extent, can provide diversification. Given that quality mid-cap funds score in containing losses, while the Midcap 150 scores on upsides, pairing such funds can balance a portfolio.
  • Investors who are wary of growing AUMs pulling down a mid-cap fund’s performance, can make some allocations to the fund.

Note: The index fund that tracks the index, Motilal Oswal Nifty Midcap 150 (explained below) currently has a small AUM as it is a new fund. While this can grow over time, allocating high share to the fund can be avoided until size picks up and tracking error more firmly established.

Next, given the current market scenario, either run SIPs in the Midcap 150 or make staggered lump-sum investments. While markets have recovered from the sharp sell-off in the earlier months, more falls as the full economic impact of the lockdown unfolds cannot be ruled out. Remember also that mid-caps in general need a high risk appetite and a long-term timeframe.

Which fund to buy?

For the Nifty Midcap 150, there is only one index fund and that’s Motilal Oswal Nifty Midcap 150. The fund was launched only in September 2019. In this limited history and using different timeframes such as 1-week and 1-month rolling returns, the fund has more or less been able to track the Nifty Midcap 150 TRI. When it lagged the index, the margin is about 20 basis points on an average. This can reduce over longer timeframes and as the fund grows. Its current AUM of Rs 44 crore is a leap up from the Rs 24 crore it was six months ago.

Here’s a list of the top mid cap mutual funds.

See also : Our rating of best Index Funds India

Picture of Bhavana Acharya

Bhavana Acharya

Bhavana Acharya is a co-founder of PrimeInvestor. Bhavana was Deputy head of research at FundsIndia and was instrumental in converting many of the research outputs to products on the platform. She is a management graduate in finance with over 11 years of experience. 4 years were at FundsIndia, 7 years with The Hindu Business Line as research analyst. LinkedIn | Twitter
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17 thoughts on “Prime Recommendation: An index to challenge midcap funds”

  1. Hitender

    Hi,

    Very nice article. But wanted to check one one thing, i have 2 MIDCAP active funds and both are beating Nifty 150 and Nifty next 50 then why should i go for index fund

    1. Bhavana Acharya

      You don’t have to go for it 🙂 The Nifty Midcap 150 does not beat all mid-cap funds all the time, as explained in the article. It is a diversifier and can go well with other mid-cap funds too. An index fund gives you market returns. It cannot be expected to beat all active funds, especially in the mid-cap space, during a rapid uptrend. – thanks, Bhavana

    1. Bhavana Acharya

      Yes, returns are after expenses. All MF NAVs are post-expense, so any MF returns you would see anywhere will be after factoring in expenses. – thanks, Bhavana

  3. Indexer

    Hi Bhavana
    The said MO Midcap 150 index fund has completed one year. The AUM is still around Rs.55 Crs. How do you see this? How is the performance of the fund compared to its benchmark (tracking error etc)? The TER is still better than some Next 50 index funds, probably to accumulate AUM.
    Any update would be helpful.

    1. Bhavana Acharya

      Hello sir,

      AUMs will grow slowly. This is a relatively new fund and one that will not be actively pushed. But for all that, for it to have grown from Rs 20-odd crore at the time of launch to Rs 50 crore now is reasonably good. There are plenty of large-cap index funds that have been around for a long time and are still languishing at sub-Rs 50 crore levels. As far as tracking error goes, the fund is slowly bringing it down. It’s still slightly higher than a Nifty 50 index fund tracking error, but that’s somewhat expected.

      Thanks,
      Bhavana

  4. mmtatkye

    Hi , Bhavana !

    Very illustratiously explained . But , I am now having doubts or in two minds , whether to invest in the active funds or these ETFs . Also due to dmat facility easily one can sell . What is your opinion on going all for ETFs.

    Thanks and Regards,
    Makarand Tatje

    1. Bhavana Acharya

      Hello sir,

      Active funds are not a complete write-off yet 🙂 Please read our article on this topic. You can mix passive and active options to build a portfolio that covers the better investment opportunities. Passive investing is done through both ETF and index funds. Which option depends on which index you need to invest in – some are only available in ETFs. It also depends on how comfortable you are with managing a portfolio that’s a mix of MF and ETFs. There’s liquidity in index fund too – it’s not that you will find it hard to redeem. We have covered index vs ETF in this article.

      Thanks,
      Bhavana

  5. Indexer

    Dear Bhavana
    Good article. Thanks.
    As suggested above, it would be good to learn from you about NN50 index v/s Midcap 150 index. While there is no overlap, the Return and Risk (volatility) are similar for both, especially when compared to Nifty 50. Any comments would be helpful.

    1. Bhavana Acharya

      Hello sir,

      Both indices are high volatile and high returning. But how much to allocate to one or both indices depends on your portfolio and risk level. There is nothing wrong in holding both the indices or either individually.

      Thanks,
      Bhavana

  6. Deepesh Mehta

    I read all your articles. But this article is not rightly compared. Why do you have to compare Average return of midcap funds across industry and highlight that index does well. If this is the right way to compare then, there should be no recommended list across midcap funds under primeinvestor.in. An investor can choose index fund across LC, MC, MuCap, SC and he doesn’t need primeinvestor research, a financial advisor to help him to invest.Just index funds would do for him.

    Moreover, SEBI classification came in Jan 2018. Any comparison before that time is not right.

    1. Bhavana Acharya

      Hello sir,

      Yes, just looking at the average would not be complete. But we have looked at returns of individual midcap funds and the index, in returns, upside and downside and seen how many beat the index and how often. This is explained in the article. Just the table shows the average of the category versus the index.

      Again, you are correct in that prior to 2018, categories were different. It’s one of the reasons we haven’t gone too far back in performance to see how funds behaved versus the index; we’ve gone back until 2014. For midcap funds, many of them already followed a classification somewhat similar to SEBI’s – if anything, they had far more held in (today’s) small-cap stocks which would have actually helped performance in the period we have taken. Further, as noted in the article, this phenomenon of midcap funds trailing the Nifty Midcap 150 is recent. So both fund performance and the index are comparable.

      While there are good index options, do note that we’ve also said this can be used in addition to active funds. There are mid-cap funds that beat the index yet. We’ve looked at index replacements in select categories only. There is space for index investing, but it still is not going to replace active funds. There are, and will be, quality active funds that beat the market and where indices cannot compete. We’ve talked about this here.

      There’s more to investing and building a portfolio that just a few index funds. Allocations matter. Blending funds (and even indices) that behave differently in the right proportion is important. Understanding equity markets and debt markets, reviewing a portfolio…all these are just as important as selecting the right funds.

      Thanks,
      Bhavana

  7. Praveen Kumar

    Hi,
    Can you also elaborate how close is this index fund to NN50? What if someone holds NN50 should they also consider this index fund?
    Regards, Praveen

    1. Bhavana Acharya

      Hello sir,

      There’s no overlap. The Next 50 has the 50 companies after the Nifty 50 – essentially until the 100th stock. The Nifty Midcap 150 is the 101st to 250th stocks. You can hold both indices. Just be aware that the Next 50 is more volatile than large-caps typically are, when you are making your allocations.

      Thanks,
      Bhavana

  8. Nellore Vittal

    Hello Bhavana,
    Excellent deep dive analysis. You have done a wonderful comparison. Full marks to you all. I am so happy with all your analysis and my decision to subscribe to your services. Till now I was always under the impression that it is better to be in Midcap active fund and not the passive fund. Your analysis has changed my perspective. It will be wonderful if you could do a similar comparison between Motilal Oswal small cap index fund vs small cap active funds. It may be worth while to see the comparison.

    In both Midcap and Small cap active funds, it is very difficult to know if we have picked the RIGHT FUND. If the chances of beating the index is low, then might as well invest in Index fund and forget about it. All my large cap funds I have shifted to either passive fund or ETF’s.

    1. Bhavana Acharya

      Hello sir,

      Thanks! 🙂 There still are mid-cap funds that beat this index – not as many as before but definitely not zero. It’s not the same situation as it is with large-caps today. And as pointed out, active funds are better on downsides. But yes, it is easier to invest in the index if you don’t want churn. We will cover the smallcap index at some point.

      Thanks,
      Bhavana

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  1. Personal trading activities of the individuals employed as research analysts shall be monitored, recorded and subject to a formal approval by the directors or compliance officer of PrimeInvestor Financial Research Private Limited.
  2. Research analysts employed by PrimeInvestor Financial Research Private Limited or their associates or relatives shall not:
    • Deal/ trade in stocks recommended/ tracked by the research analyst within 30 days before and five days after the publication of a research report;
    • Deal/ trade in securities that the research analyst reviews in a manner contrary to the given recommendation;
    • Purchase or receive securities of the issuer before the issuer's initial public offering, if the issuer is principally engaged in the same types of business as companies that the research analyst follows or recommends.

Disclosures with respect to Research and Recommendations Services:

  1. The RA or its directors or any of its officer/employee does not trade in securities which are subject matter of recommendation.
  2. The RA, or any of its officers, directors, employees, or subsidiaries have not received any compensation/ benefits whether monetary or in kind, from the AMC, company, government, bank or any other product manufacturer or third party, whose products are the subject of its Research Services or investment information.
  3. The Research Analysts who have prepared the research reports that form part of the Research Services (“Research Analyst”) certify that all of the views expressed in the research report accurately reflect their views about the subject company or subject security.
  4. The RA or directors or employees or Research Analyst certify that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
  5. The Research Analyst has not served as director, officer or employee in the subject company, AMC or insurance company of the mutual fund or insurance policy that is the subject of this report, or company whose bonds, NCDs, fixed deposits or other savings products that is the subject of this report.
  6. The Research Analyst or their relatives do not have any known direct or indirect material conflict of interest including long/short positions in the subject company.
  7. The Research Analyst may hold investments in the stocks, mutual fund schemes, bonds, fixed deposits, insurance policies, or other products that are the subject of the recommendations provided as part of the Research Services. The Research Analyst certifies that they will not act in a manner contrary to their views on these securities except in the event of significant news or event or change in personal financial circumstances and without formal approval from the directors of PrimeInvestor Financial Research Pvt. Ltd. or the compliance officer.
  8. There are no actual or potential conflicts of interest arising from any connection to or association with any issuer of products/ securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of the Research Services. Such conflict of interest shall be disclosed to the client as and when they arise.
  9. The RA or its directors or its employee or its associates have not managed or co-managed the public offering of any company. The RA or its directors or its employee or its associates have not received any compensation for investment banking or merchant banking of brokerage services from the subject company. The RA or its directors or its employee or its associates have not received any compensation for products or services other than above from the subject company. The RA or its directors or its employee or its associates have not received any compensation or other benefits from the Subject Company or 3rd party in connection with the research report/ recommendation.
  10. The subject company of its research recommendations was not a client of the RA or its directors or its employee or its associates during twelve months preceding the date of recommendation services provided.
  11. The RA or its directors or its employee or its associates has not served as an officer, director or employee of the subject company. Research Analysts has not been engaged in market making activity of the subject company.

PrimeInvestor Financial Research Pvt. Ltd., its Associates, the Research Analysts or their relatives holds ownership of 1% or more, in respect of the said issuer company(ies)? – NO

8. Termination of service and refund of fees:

The RA may terminate or suspend rendering of Research Services to the client in the following circumstances:

  1. On account of suspension/cancellation of registration of RA by SEBI. In case of suspension of certificate of registration of the RA for more than 60 (sixty) days or cancellation of the RA registration, RA shall refund the fees, on a pro rata basis for the period from the effective date of cancellation/ suspension to end of the client’s subscription period.
  2. The RA voluntarily chooses to terminate its Research Service. In the event of such termination of the Research Service, the RA shall refund the fees, on a pro rata basis for the period from the date of such termination of research service to end of the client’s subscription period.

9. Grievance redressal and dispute resolution:

Any grievance related to:

  1. nonreceipt of research report, or
  2. missing pages or inability to download the entire report, or
  3. any other deficiency in the research services provided by RA

shall be escalated promptly by the client to the person/employee designated by RA, in this behalf as under:

Name: Bhavana Acharya
Designation: Director & Compliance Officer, PrimeInvestor Financial Research Pvt Ltd
Email: [email protected]

The RA shall be responsible to resolve grievances within 7 (seven) business working days or such timelines as may be specified by SEBI under the RA Regulations.

RA shall redress grievances of the client in a timely and transparent manner. Any dispute between the RA and his client may be resolved through arbitration or through any other modes or mechanism as specified by SEBI from time to time.

If the client is not satisfied with the response of the RA, he/she can lodge his/her grievances with SEBI at scores.sebi.gov.in. Alternatively, the client may also write to any of the offices of SEBI. For any queries, feedback or assistance, please contact SEBI Office on Toll Free Helpline at 1800 22 7575 / 1800 266 7575

Details on grievances are available on the Website as follows: https://primeinvestor.in/ra-grievance/

10. Additional clauses:

Scope of the Research Service: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Services are not meant to be tailor-made or customized solutions that specifically apply to each client based on his/her risk profile.

The RA never guarantees the returns on the recommendation provided. Investor shall take note that investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The RA shall not be responsible for any loss to the Investors.

This service is not directed for access or use by anyone in a country, especially the USA, Canada or the European Union countries, where such use or access is unlawful or which may subject PrimeInvestor Financial Research Pvt Ltd or its affiliates to any registration or licensing requirement.

The Research Service, including recommendations, research reports, updates, and other information will be accessible through the RA’s website https://primeinvestor.in only. Such recommendations and updates will not be provided over phone calls.

Fees: Our current fee structure, the term and duration of our subscription for our Research Service, can be viewed on our website: https://primeinvestor.in/prime-pricing. Eligibility for any discounts is ascertained at the time the client subscribes. Any such discount and its tenure shall be at the discretion of the RA.

Subscription and access to content services fall under the purview of Goods and Services Tax (GST) as per the current indirect taxation policy, Government of India. Unless otherwise indicated, prices stated on our website are exclusive of applicable GST, any applicable value added tax (VAT) or other sales taxes. We are a business-to-consumer (B2C) service provider and we do not commit to provide any input tax credit on GST charged on subscription to our Research Service.

We may change the Subscription Fees and charges then in effect, or add new fees or charges which will take effect at the end of the client’s subscription period, by giving notice in advance and an opportunity to cancel renewal of the subscription.

Subscription Access & Renewal: Subscription to the Website commences immediately on the realisation of payment of the Subscription Fees. Subscriptions are set to be renewed automatically at the end of the subscription period.

Unless the client notifies us before the end of his/her subscription period, or the client cancels the auto-renewal mandate within the period specified by law, that the client does not wish to renew his/her subscription, the client’s subscription will renew for the period defined by the client’s subscription plan. We will charge the subscription using the same payment method that you previously used.

Although the client may notify to us his/her intention to his/her subscription, such notice will only take effect at the end of his/her then current subscription period, and he/she will not receive a refund other than as set out under Clause 8 in these Terms.

The client may notify us of his/her wish to cancel his/her subscription by sending an email to [email protected]. The client must provide at least 5 business days advance notice for this to be implemented.

Refunds: There can be no cancellation and refund of subscription fee paid once the subscription is active, other than as stated in Clause 8 of these Terms. If the client is entitled to a refund as specified under Clause 8 of these Terms, the RA will credit that refund to the card or other payment method used by the client to submit payment, unless it has expired - in which case the RA will contact the client to proceed with the refund. If we do issue a refund or credit due to circumstances outside the obligations specified under Clause 8, we are under no obligation to issue the same or a similar refund in the future.

General disclaimers: The recommendations made herein in the Research Services are expression of views and/or opinions and should not be deemed or construed to be advice for the purpose of purchase or sale of any security, nor a solicitation or offering on any investment/ trading opportunity on behalf of the company, AMC, insurance company, or issuer of security referred to herein.

The content and research reports generated by the RA does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities.

The information/ opinion/ views mentioned in research reports or by the RA are not meant to serve as a professional guide to the client or recipients of this Report. The research report, recommendation, or any other content published by the RA do not assure or guarantee any minimum or fixed returns to the client or recipients of the reports/ recommendations/ content.

Use of this information is at the client’s own risk. The client must make his/ her own investment decisions based on his/her specific investment objective and financial position and using such independent advisors as he/she believes necessary. The services rendered by the RA are on a best-effort basis. All information in the content or research report of the RA is provided on an as is basis. Information is believed to be reliable but the RA does not warrant its completeness or accuracy and expressly disclaim all warranties and conditions of any kind, whether express or implied.

While due care has been taken to ensure that the disclosures, information, and opinions given are fair and reasonable, PrimeInvestor Financial Research Pvt Ltd and/or none of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information/ opinions/ views contained in the research report and recommendations that form part of the Research Service, and/or mails, social media or notifications issued by PrimeInvestor Financial Research Pvt Ltd or any other agency appointed/authorised by PrimeInvestor Financial Research Pvt Ltd. Returns and performance figures mentioned in the research report represent past performance and should not be constituted to be future returns or guaranteed returns.

Any agreements, transactions or other arrangements made between the client and any third party named on (or linked to from) the Website are at your own responsibility and entered into at your own risk. Any information that you receive via the Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. Market price information may be rounded up/down and therefore may not be entirely accurate.

The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research Services before onboarding.

History, present business and background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services.

Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made thereunder against the Research Analyst relating to Research Analyst services.

Details of the RA's associates: No associates.

Usage of Website Content: This Website is controlled and operated by the RA. All material, including research reports, recommendations, portfolios, ratings, lists of financial products, illustrations, statements, opinions, views, photographs, products, images, artwork, designs, text, graphics, logos, button icons, images, audio and video clips and software (collectively, “Content”) are protected by copyrights, trademarks and other intellectual property rights that are owned and controlled by the RA or by other parties that have licensed their material to us.

Except where otherwise agreed in writing with the RA, material on the Website is solely for the client’s personal, non-commercial use. Except as provided below, the client must not copy, reproduce, republish, upload, post, transmit or distribute such material in any way, including by e-mail or other electronic means and whether directly or indirectly and the client must not assist any other person to do so.

Without the prior written consent of the RA, modification of the materials, use of the materials on any other web site or networked computer environment or use of the materials for any purpose other than personal, non-commercial use is a violation of the copyrights, trademarks and other proprietary rights, and is prohibited. Any use for which the client receives any remuneration, whether in money or otherwise, is a commercial use for the purposes of these Terms.

The client may occasionally distribute a copy of a research report, or a portion of the same, from the Website in non-electronic form to a few individuals without charge, provided the client includes all copyright and other proprietary rights notices in the same form in which the notices appear, original source attribution, and the phrase “Used with permission from PrimeInvestor Financial Research Pvt. Ltd.”

While the client may occasionally download and store research reports or information from the Website for his/her personal use, he/she may not otherwise provide others with access to the same. The foregoing does not apply to any sharing functionality we provide through the Website that expressly allows the client to share Content or links to Content with others. In addition, the client may not use Content he/she has downloaded for personal use to develop or operate an automated trading system or for data or text mining.

The client agrees not to rearrange or modify the Content available through the Website. The client agrees not to display, post, frame, or scrape the Content for use on another website, app, blog, product or service, except as otherwise expressly permitted by these Terms. You agree not to create any derivative work based on or containing the research products and Content. The framing or scraping of or in-line linking to the Services or any Content contained thereon and/or the use of webcrawler, spidering or other automated means to access, copy, index, process and/or store any Content made available on or through the Services other than as expressly authorized by us is prohibited.

The client further agrees to abide by exclusionary protocols (e.g., Robots.txt, Automated Content Access Protocol (ACAP), etc.) that may be used in connection with the Research Services. The client may not access parts of the Research Services to which he/she is not authorized, or attempt to circumvent any restrictions imposed on your use or access of the Services.

As a general rule, the client may not use the Content, including without limitation, any Content made available through one of our RSS Feeds, in any commercial product or service, without our express written consent.

The client may not create apps, extensions, or other products and services that use our Content without our permission. The client may not aggregate or otherwise use our Content in a manner that could reasonably serve as a substitute for a subscription to the Website.

The client may not access or view the Services with the use of any scripts, extensions, or programs that alter the way the Services are displayed, rendered, or transmitted to you without our written consent.

The client agrees not to use the Services for any unlawful purpose. We reserve the right to terminate or restrict the client's access to the Website if, in our opinion, the client's use of the Services may violate any laws, regulations or rulings, infringe upon another person's rights or violate these Terms.

Prohibited content: The Website includes comments sections, blogs and other interactive features that allow interaction among clients and between clients and the RA. We call the information posted by or contributed by users “Contributed Content.” In the course of availing of the Research Services or uploading any post or comment on the Website, the client shall not post any Contributed Content that (i) contains nude, semi-nude, sexually suggestive photos, (ii) tends or is likely to abuse, harass, threaten, impersonate or intimidate other users of the Website and/or Research Services, (iii) is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely to use or have access to the Website and/or Services, or (iv) otherwise violates, is prohibited or restricted by applicable law, rule or regulation, is offensive or illegal or violates the rights of, harms or threatens the safety of other users of the Website and/or Services (collectively “Prohibited Content”).

We reserve the right to cease to provide the client with the Research Services or access to the Website, or terminate your subscription, with immediate effect and without notice and liability, for violating these Terms, applicable law, rules or regulations and reserves the right to remove Prohibited Content which is in violation of these Terms, or is otherwise abusive, illegal or disruptive. The determination of whether any content constitutes Prohibited Content, violates these Terms, or is otherwise abusive illegal or disruptive, is subject to the sole determination of the Firm.

Changes to Research Services: We are constantly endeavouring to improve the quality of Research Services provided to our clients. Due to this, the form and nature of the Research Services provided may change from time to time without any prior notice to the client. We reserve the right to introduce and initiate new features, functionalities, components to the Website and/or Research Services and/or change, alter, modify, or discontinue existing ones without any prior notice to the client.

Warranty and liability disclaimer: The Website, Research Services, and all the materials and services, included on or otherwise made available to the client through this Website is provided by the RA on an “as is” and “as available” basis without any representation or warranties, express or implied except otherwise specified in writing. Without prejudice to the foregoing paragraph, the RA does not warrant that:

  • This Website and/or Research Services will be constantly available, or available at all;
  • The information on this Website or provided through the Research Services is complete, true, accurate or not misleading; or
  • The quality of any products, services, information, or other material that you obtain through the Website or Services will meet your expectations.

The RA, to the fullest extent permitted by law, disclaims all warranties, whether express or implied, including the warranty of merchantability, fitness for particular purpose and non-infringement. The RA makes no warranties about the accuracy, reliability, completeness, or timeliness of the Website, Research Services, Content, Contributed Content, Services, software, text, graphics and links.

The RA does not warrant that this Website, Research Services, information, content, materials, or any other material included on or otherwise made available to you through this Website, their servers, or electronic communication sent by the RA are free of viruses or other harmful components.

Nothing on this Website constitutes, or is meant to constitute, advice of any kind.

Indemnification: The client:

  1. Represents, warrants and covenants that no materials of any kind provided by him/her will:
    1. Violate, plagiarise, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or
    2. Contain libellous, Prohibited Content or other unlawful material;
  2. Hereby agree to indemnify, defend and hold harmless the RA and all of the RA’s officers, directors, owners, agents, customers/clients, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable advocate’s fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by the client of these Terms or the foregoing representations, warranties and covenants. The client shall cooperate as fully as reasonably required in the defence of any such claim. The RA reserves the right, at its own expense, to assume the exclusive defence and control of any matter subject to indemnification by the client.

Applicable law: This Website, including the Content and Contributed Content and information contained herein, and the provision of Research Services shall be governed by the Securities and Exchange Board of India, laws of the Republic of India and the courts of Chennai, India which shall retain exclusive jurisdiction to entertain any proceedings in relation to any disputes arising out of the same. As such, the laws of India shall govern any transaction completed using this Website.

Information gathered and tracked: Information submitted or collected on the Website or pursuant to the use of the Services is stored in a database. Specifically, we store the username, name, e-mail address, contact number, as submitted or collected on our Website or through the provision of the Research Services. We may use such information to send out occasional promotional materials, including alerts on new Services available, or other promotional and marketing material relating to our clients and customers.

In accordance with the Information Technology Act 2000, the name and the details of the Grievance Officer at PrimeInvestor is provided below:

Mr. Srikanth Meenakshi
PrimeInvestor Financial Research Pvt. Ltd., Registered office: 659, 4th Avenue, D-Sector, Anna Nagar Western Extension, Chennai 600 101.
Email: [email protected]

11. Mandatory notice:

Clients shall be requested to go through Do’s and Don’ts while dealing with RA as specified in SEBI master circular no. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49 dated May 21, 2024 or as may be specified by SEBI from time to time.

12. Optional Centralised Fee Collection Mechanism:

SEBI has operationalized a centralized fee collection mechanism for IA and RA. Under this mechanism, clients shall pay fees to IAs/RAs through a designated platform/portal administered by a recognized Administration and Supervision body. This is an optional mechanism for the registered entities. At this time, PrimeInvestor has opted out of this fee collection mechanism. Therefore, all subscription payments for the Research Services will be through the modes as specified in Clause 5 of these Terms.

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