The new fund is provided by Legal & General (Unit Trust Managers), with the assets managed by LGIM.

Legal & General Investment Management has launched the L&G UK Mid Cap Index Fund, which it says aims to provide growth by tracking the performance of the FTSE 250 Ex-Investment Trust Index.

LGIM said it tracks the above index to focus solely on UK-listed businesses, avoiding many of the investment trusts that come with tracking the traditional FTSE 250 Index. The latter lists trusts that can be invested in a variety of asset classes, geographies and investment strategies, while the former provides exposure to medium-sized UK-listed companies ranging from household names to up-and-coming enterprises across an assortment of industry sectors.

“Medium-sized UK listed companies have significant potential for capital growth over the long term, and this fund is a useful tool for investors and advisors to diversify and tailor their UK equity exposure,” said Simon Hynes, head of UK retail distribution at LGIM.

The fund will be available on all major intermediary platforms and has an ongoing charges figure of 0.14 per cent.