The Nifty Midcap index is a stock market index listed on the NSE (National Stock Exchange) comprising stocks of Indian companies ranked between 101 and 250 based on market capitalisation of ₹5,000 crore and ₹20,000 crore. The most popular Nifty Midcap indexes are Nifty Midcap 50, Nifty Midcap 100 and Nifty Midcap 150.
Mid-cap indices provide a benchmark for investors looking to invest in mid-sized companies and are used to measure the performance of mid-cap stocks relative to the broader stock market. Funds that track the performance of Nifty Midcap index to provide returns that closely match the midcap index are known as Nifty Midcap index funds.
In this blog, we have decoded the working of different types of Nifty Midcap index. Let’s dive in!
Listed below are some of the features of Nifty Midcap Index:
The Nifty Mid Cap index features companies from the mid cap segment and provides a benchmark for mid cap stocks. These companies have the potential to become large-cap companies in the future, hence there’s a lot of potential in terms of growth.
The index provides exposure to a diverse range of mid-cap stocks across various sectors. This seemingly helps in reducing the risk associated with investing in individual stocks. Hence, funds that track the Nifty )NSE) Mid-cap index are known to provide risk-adjusted returns in the long term.
Mid-cap indices provide a useful benchmark for investors willing to invest in mid-sized companies. The index helps in measuring the performance of mid-cap stocks relative to the broader stock market.
Mid-cap companies are often considered to have higher growth potential compared to large-cap companies. This makes mid-cap indices an attractive investment option for those seeking higher returns.
While mid-cap indexes offer higher growth potential compared to large-cap companies, they also come with higher risk. However, this risk could be mitigated if you stay invested for the long term and keep your portfolio diversified.
The Nifty Midcap 50 includes top 50 companies from the mid cap segment based on full market capitalisation. These companies are a part of the broader Nifty Midcap 150 index. The
index represents about 6% of the free-float market capitalisation of the stocks listed on NSE as on March 29, 2019.
The Nifty Midcap 100 index is a stock market index that comprises companies ranked 101 – 200 based on market cap. The index is a part of the broader Nifty Midcap 150 index. The Nifty Midcap 100 index provides a benchmark for the mid-cap segment of the Indian stock market and offers exposure to a diverse range of mid-sized companies across various sectors.
The Nifty Midcap 150 index fund comprises companies listed on the NSE ranked between 101 and 250 based on market capitalisation of ₹5,000 crore to ₹20,000 crore. The index provides investors exposure to diverse sectors. Some of the companies listed have the potential to become large-cap companies in the future – one of the reasons why this index holds a tremendous growth potential.
Refer to the table below to understand the difference between Nifty Midcap 50, Nifty Midcap 100 and Nifty Midcap 150.
|Parameters||Nifty Midcap 50||Nifty Midcap 100||Nifty Midcap 150|
|No. of Companies||First 50 companies from the midcap segment||First 100 companies in the midcap segment||First 150 companies in the midcap segment|
|Diversification||Less diversified compared to Nifty Midcap 100 and Nifty Midcap 150||More diversified than Nifty Midcap 50 but less diversified compared to Nifty Midcap 150||Most diversified index among all Midcap Nifty indexes|
|Risk||Lower risk compared to Nifty Midcap 100 and Nifty Midcap 150||Higher risk compared to Nifty Midcap 50 and lower risk compared to Nifty Midcap 150||Higher risk compared to Nifty Midcap 50 and Nifty Midcap 100|
|Growth Potential||Lower growth potential than Nifty Midcap 100 and Nifty Midcap 150||Higher growth potential than Nifty Midcap 50 but lower than Nifty Midcap 150||Highest growth potential|
|Representation||Representation of the performance of smaller mid-cap companies||Representation of the performance of mid-sized companies||Representation of the performance of larger mid-cap companies|
The top 10 stocks of Nifty Midcap 50 are based on their weightage. This weightage could change every month. However, checking the list of stocks could give you a fair idea of the companies present in the index. Here are the details:
|AU Small Finance Bank Ltd.||3.62%|
|Federal Bank Ltd.||3.47%|
|Indian Hotels Co. Ltd.||3.23%|
|Shriram Finance Ltd.||3.18%|
|TVS Motor Company Ltd.||2.94%|
|Page Industries Ltd.||2.94%|
|Persistent Systems Ltd.||2.88%|
|Bharat Forge Ltd.||2.73%|
|Jindal Steel & Power Ltd.||2.68%|
The top 10 stocks of Nifty Midcap 100 are based on their weightage. Checking the list of stocks could give you a fair idea of the companies present in the index. Here are the details:
|Max Healthcare Institute Ltd.||2.42%|
|AU Small Finance Bank Ltd.||2.20%|
|Federal Bank Ltd.||2.11%|
|Tube Investments of India Ltd.||2.02%|
|Varun Beverages Ltd.||1.99%|
|Indian Hotels Co. Ltd.||1.97%|
|Shriram Finance Ltd.||1.94%|
|TVS Motor Company Ltd.||1.79%|
|Page Industries Ltd.||1.79%|
The top 10 stocks of Nifty Midcap 150 are based on their weightage. This list can change based on various factors. However, checking the list of stocks could give you a fair idea of the companies present in the index. Here are the details:
|Max Healthcare Institute Ltd.||1.87%|
|AU Small Finance Bank Ltd.||1.71%|
|Federal Bank Ltd.||1.63%|
|Tube Investments of India Ltd.||1.56%|
|Varun Beverages Ltd.||1.54%|
|Indian Hotels Co. Ltd.||1.52%|
|Shriram Finance Ltd.||1.50%|
|TVS Motor Company Ltd.||1.39%|
|Page Industries Ltd.||1.39%|
The NSE Midcap index Is computed using free float market capitalisation method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalisation value. Let’s check out the sector-wise representation of Nifty Midcap 50, Nifty Midcap 100 and Nifty Midcap 150.
|Sector||Nifty Midcap 50 (Weightage)||Nifty Midcap 100 (Weightage)||Nifty Midcap 150 (Weightage)|
|Automobile and Auto Components||7.44%||8.09%||8.53%|
|Oil, Gas & Consumable Fuels||4.79%||5.22%||4.04%|
|Metals & Mining||4.28%||3.79%||2.93%|
|Media, Entertainment & Publication||2.55%||1.84%||1.42%|
|Fast Moving Consumer Goods||1.39%||4.57%||3.81%|
You can invest in Nifty Midcap indexes via midcap mutual funds. For example, if you’re investing in a Nifty Midcap 100 index fund, the fund would mirror the performance of the Nifty Midcap 100 index to give you returns that closely match the performance of the index. The return depends on the performance of the index subject to tracking error.
Here are the ways you can invest in Nifty Midcap index funds:
Alternatively, you can also invest offline – here’s the step-by-step process:
Potential risks of the Nifty Midcap Index could be:
Midcap companies may have limited financial resources, untested management teams, and untested business models, which can result in higher company-specific risk.
Midcap stocks can be more volatile than large-cap stocks and may experience larger price swings in response to market events.
Midcap stocks can be heavily concentrated in specific sectors, which can result in higher sector-specific risk.
Nifty Midcap index funds give investors the opportunity to capture the potential growth of mid-sized companies. However, note that investing in funds that track the Nifty midcap index are suitable for investors who have moderate to high-risk appetite. So, consider your investment goals and risk tolerance before investing in such schemes.
Want to be a part of emerging companies’ growth story? Invest in Nifty Midcap 150 with Navi Mutual Fund. What’s even better? You can start investing with as low as ₹10!
The Nifty midcap index is a stock market index comprising mid-sized companies listed on the NSE ranked from 101 – 250 based on market cap of ₹5,000 crore to ₹20,000 crore. These companies fall between large-cap and small-cap companies.
Nifty Midcap index has 150 company stocks listed on the NSE. Each stock carries a different weightage.
Nifty Midcap 50 has given a 1-year return of 2.39%, 5-year return of 9.16% and 20.28% return since inception (as of 31 January 2023).
Nifty Midcap 100 has given 1-year return of 4.22%, 3-year return of 11.25% and 13.44% return since inception (as of 31 January 2023).
Nifty Midcap 150 CAGR for 1-year is 1 year: 3.66% and 5 year CAGR is 12.53%. The index doesn’t have a 10-year CAGR.
Nifty Mid Cap funds are riskier than large-cap funds but safer than small-cap funds. Since these are market-linked schemes, they are prone to market volatility. However, you can mitigate the risks by staying invested for the long term.
Equity investments are generally suitable for investors having a long term investment horizon and those who aren’t influenced by short-term market volatility. Historically, midcap funds have given higher returns than bank deposit schemes.
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