Latest news with #NiftyMidcap150TotalReturnsIndex
Time of India
24-07-2025
- Business
- Time of India
Midcaps outshine smallcaps long-term; offer more stability; deliver 'risk-adjusted returns'
Mutual funds focused on midcap stocks have delivered stronger long-term returns for investors using systematic investment plans (SIPs), outperforming smallcap funds over longer periods. According to a study by Equirus Credence Family Office, the Nifty Midcap 150 Total Returns Index (TRI) generated an average return of 17.3% over 10-year rolling periods, compared to 15.1% for the Nifty small cap 250 TRI. Over 15 years, the trend continued, with midcaps delivering 16.9%, outperforming smallcaps, which returned 14.1%. "Midcap stocks have outperformed smallcaps over long term offering better risk-adjusted returns, stronger business fundamentals, and higher survivability," Chanchal Agarwal, CIO, Equirus Credence Family Office told ET. In the classification system, companies ranked 101-250 by market capitalisation are considered midcaps, whilst those ranked 251 and below are designated smallcaps. The midcap segment represents a more concentrated space versus smallcaps, which encompass a broader, more diverse group of companies. Recent substantial fund inflows through SIPs have particularly influenced midcap stocks, affecting their valuations and performance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo Shorter duration analysis shows midcap index returns of 13.9% and 17.4% over three and five years respectively, surpassing smallcap returns of 11.9% and 15.11%. "The best smallcap companies go on to become midcap companies and hence it is logical that over the longer term they offer better returns," Trideep Bhattacharya, CIO, Edelweiss Mutual Fund told ET. Midcap stocks have shown more stability than smallcaps, with significantly lower drawdowns over time. According to data from Equirus Credence Family Office, the lowest five- and ten-year rolling monthly SIP returns for the Nifty Midcap 150 TRI were -8.2% and 6%, respectively. In contrast, the Nifty Smallcap 250 TRI posted much steeper minimum returns of -21.2% and 0.2% over the same periods. Midcap stocks are now trading at a premium to large-cap blue chips. The Nifty Midcap 150 has a price-to-earnings (PE) ratio of 35.21, higher than the Nifty 50's 22.29 and the Nifty Smallcap 250's 33.82. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
24-07-2025
- Business
- Time of India
Fitter & Stronger: Midcaps outperform smallcaps in long term
"They are no longer small or unproven; many have solid balance sheets, professional management, and institutional interest." Mutual funds focusing on midcap stocks have shown strong returns for SIP investors over time. Nifty Midcap 150 TRI has surpassed Nifty Smallcap 250 TRI in 10 and 15-year returns. Midcaps offer better risk-adjusted returns and stronger fundamentals. Recent MF inflows have significantly impacted midcap valuations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Mutual funds that bet on midcap stocks have worked well for investors who have used systematic investment plans (SIPs) over longer periods, outperforming their smallcap counterparts.A study by Equirus Credence Family Office shows that the Nifty Midcap 150 Total Returns Index (TRI) delivered an average return of 17.3%, vs 15.1% for Nifty Smallcap 250 TRI, based on 10-year rolling returns. Over 15 years, the midcap index returned 16.9% versus 14.1% for the smallcap index."Midcap stocks have outperformed smallcaps over long term offering better risk-adjusted returns , stronger business fundamentals, and higher survivability," says Chanchal Agarwal, CIO, Equirus Credence Family funds categorise companies ranked 101-250 by market capitalisation as midcaps, while those ranked 251 and below fall under the category of makes the midcap universe a narrower space compared to small caps, which comprise a much larger and more fragmented set of companies. The recent flood of MF inflows, through SIPs, has had a more concentrated and pronounced impact on midcap stocks, driving valuations and supporting over shorter durations of three and five years, the midcap index returned 13.9% and 17.4%, respectively, as against 11.9% and 15.11% for small caps."The best smallcap companies go on to become midcap companies and hence it is logical that over the longer term they offer better returns," says Trideep Bhattacharya, CIO, Edelweiss Mutual also tend to experience lower drawdowns compared to smallcap funds. The minimum return over a five- and ten-year period for a rolling monthly SIP in Nifty Midcap 150 TRI was -8.2% and 6%, respectively. In comparison, the Nifty Smallcap 250 TRI posted minimum returns of -21.2% and 0.2%. The outperformances have resulted in midcaps trading at a premium to blue-chips. The Nifty Midcap 150 is at a PE ratio of 35.21 times as against 22.29 of Nifty. The Nifty Smallcap 250's PE ratio is 33.82 rich valuations, Equirus Credence expects midcaps to continue doing well. "Midcap companies are in a strong position," said Agarwal. "They are no longer small or unproven; many have solid balance sheets, professional management, and institutional interest."
Economic Times
24-07-2025
- Business
- Economic Times
Fitter & Stronger: Midcaps outperform smallcaps in long term
Agencies Live Events Mumbai: Mutual funds that bet on midcap stocks have worked well for investors who have used systematic investment plans (SIPs) over longer periods, outperforming their smallcap counterparts.A study by Equirus Credence Family Office shows that the Nifty Midcap 150 Total Returns Index (TRI) delivered an average return of 17.3%, vs 15.1% for Nifty Smallcap 250 TRI, based on 10-year rolling returns. Over 15 years, the midcap index returned 16.9% versus 14.1% for the smallcap index."Midcap stocks have outperformed smallcaps over long term offering better risk-adjusted returns , stronger business fundamentals, and higher survivability," says Chanchal Agarwal, CIO, Equirus Credence Family funds categorise companies ranked 101-250 by market capitalisation as midcaps, while those ranked 251 and below fall under the category of makes the midcap universe a narrower space compared to small caps, which comprise a much larger and more fragmented set of companies. The recent flood of MF inflows, through SIPs, has had a more concentrated and pronounced impact on midcap stocks, driving valuations and supporting over shorter durations of three and five years, the midcap index returned 13.9% and 17.4%, respectively, as against 11.9% and 15.11% for small caps."The best smallcap companies go on to become midcap companies and hence it is logical that over the longer term they offer better returns," says Trideep Bhattacharya, CIO, Edelweiss Mutual also tend to experience lower drawdowns compared to smallcap funds. The minimum return over a five- and ten-year period for a rolling monthly SIP in Nifty Midcap 150 TRI was -8.2% and 6%, respectively. In comparison, the Nifty Smallcap 250 TRI posted minimum returns of -21.2% and 0.2%. The outperformances have resulted in midcaps trading at a premium to blue-chips. The Nifty Midcap 150 is at a PE ratio of 35.21 times as against 22.29 of Nifty. The Nifty Smallcap 250's PE ratio is 33.82 rich valuations, Equirus Credence expects midcaps to continue doing well. "Midcap companies are in a strong position," said Agarwal. "They are no longer small or unproven; many have solid balance sheets, professional management, and institutional interest."
