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Aditya Birla Sun Life Mutual Fund on Thursday launched two new index funds focused on the Nitfy midcap and smallcap indices. While the Nifty midcap 150 index fund is an open-ended scheme tracking Nifty midcap 150 TR index, the Nifty smallcap 50 index fund is an open-ended scheme tracking Nifty smallcap 50 TR (total return) index, the company said. Both the schemes are open and will close on March 26, the fund house said. A broad-based market rally is a favourable period for the mid and small caps to outperform, Aditya Birla Sun Life AMC chief executive A Balasubramanian said, adding the cyclical recovery that is being witnessed now also sets a stage for mid and small caps to do well as they have higher exposure to the domestic economy. The new two index funds provide an opportunity to investors to participate in the broader market opportunities. For those seeking to enter higher-growth midcap and small cap stocks, index funds in mid and small cap spaces can provide a lower-risk alternative with the advantage of lower cost, he added