What is Nifty Midcap 50 – Returns and Stock List 2023

What is Nifty Midcap 50?

The Nifty 50 Midcap index comprises top 50 Indian companies based on market capitalisation that are a part of the Nifty 150 Midcap index. The index represents about 6% of the free float market capitalisation of the stocks listed on NSE as on 29 March 2019. This index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs, and structured products.

Let’s know more about the Nifty Midcap 50 index and the funds that are designed to track the index in detail. 

Nifty 50 Midcap Index at a Glance

The table below provides a brief overview of the Nifty Midcap 50 index: 

How is the Nifty Midcap 50 Index Constructed?

This index is constructed via a float-adjusted market capitalisation weighted methodology. The methodology also takes into account constituent changes in the index and corporate actions such as stock splits, rights issuance, etc., without affecting the index value. 

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What is Nifty Midcap 50 Methodology? 

This index follows the free-float market capitalisation methodology. To better understand this method, let us first understand capitalisation in more detail. 

Free float market capitalization is the product value of all publicly traded shares and their trading price. It also includes shares with differential voting rights if they are eligible for public trading. 

The implementation of this method ensures fairness in determination of companies to be included on the index. Since the index is a reflection of the market movements, it is fair to only consider shares that are being actively traded on the market. On the other hand, if the full market cap of a company were to be considered, it would create a huge difference in the determination of this  index.

Eligibility Criteria for Selection of Constituent Stocks/Companies

As per the Nifty index methodology document, stocks featured in the Nifty Midcap 50 index have to meet the following eligibility criteria::

• Companies listed in this index should be a part of NIFTY Midcap 150
• The companies listed should have a market cap of ₹5,000 crore to ₹20,000 crore
• The stocks will be included if the full market capitalisation of any F&O constituent in NIFTY Midcap 150 is twice of the last constituent in NIFTY Midcap 50.
• For newly-listed shares, the eligibility criteria is checked based on the data for a 3-month period instead of a 6-month period.

• The company must be incorporated in India. Therefore no foreign company can be listed on the Nifty 50 index.
• It should be listed on the National Stock Exchange (NSE) and must also be available for trading in the NSE futures and options segment.
• Free-float market capitalisation of a company must be in the top 50. The term free-float market capitalisation refers to shares which are available to be freely traded by the general public. In other words, these shares must not be reserved for insiders, promoters, or even the government.
• The companies have a very high trading volume and are thus highly liquid, which is another essential element for a Nifty 50 company.

What are the Top 10 Companies Listed on Nifty 50 Midcap Index? 

Listed below are top 10 Nifty 50 Midcap companies along with their weightage. Note that the list might change based on performance.

What is the Weightage of Different Sectors in Nifty 50 Midcap?

Financial services and capital goods are two leading sectors in terms of weightage in Nifty 50 midcap. They hold a 26.04% and 15.22% weightage respectively. The index is constituted of diverse sectors and a detailed table for the same is given below:

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Nifty Midcap 50 Index Returns

This index has seen decent growth so far both in terms of price return and total return. Even though quarter-to-date and year-to-date returns have been negative, the long-term returns have been positive. 

Speaking of inception, Nifty 5 index has shown a price return of 11.95% and a total return of 13.44% so far. For the uninformed, price return means the price movements of listed stock which leads to capital gains or losses. The total return means all the returns including price return, dividends, interest or any other return realised on a particular security.

For a brief outlook on the performance of the index, refer to the table below.

What is the difference between Nifty Midcap 50 and Midcap 150?

Refer to the table below to understand the difference between Nifty Midcap 50 and Nifty Midcap 150.

What is the Difference between Nifty Midcap 50 and Midcap 100?

Refer to the table below to understand the difference between Nifty Midcap 50 and Nifty Midcap 100:

How to Invest in Nifty Midcap 50 Index? 

You can invest in Nifty Midcap 50 index fund via AMC or a third-party aggregator to capture the potential of the Nifty Midcap 50 index.  

Investing via AMC

• Step 1: Go to the official website of AMC or download their app
• Step 2: From the mutual fund section, select a fund on the basis of expense ratio, tracking error, etc. 
• Step 3: Complete your KYC and start investing via SIP or in lump sum 

Investing via Aggregator

• Step 1: Go to the aggregator’s website or download their app
• Step 2: Select a fund based on cost, tracking error, etc.
• Step 3: Complete your KYC and start investing

Final Word

The Nifty midcap 50 is a representation of the top 50 midcap companies on the Indian stock market. Midcap companies are seasoned companies that can also become large-cap companies in the future. This is a moderately volatile index. So, the impact of any change in the market, to some extent can also be seen here. However, this risk could be mitigated if you stay invested for the long term.

Investing in midcap index funds could help you diversify your portfolio at significantly lower cost. So, if you want to invest in such funds, you can now do so with Navi Mutual Fund. Worried about market risks? You can start with small investments as low as ₹10!

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