{"id":3209,"date":"2022-03-01T16:40:29","date_gmt":"2022-03-01T16:40:29","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=3209"},"modified":"2022-03-01T16:42:12","modified_gmt":"2022-03-01T16:42:12","slug":"4-things-to-know-midcap-funds","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/4-things-to-know-midcap-funds\/","title":{"rendered":"Are Midcaps Winning In The Long Term? Here\u2019s What You Need To Know"},"content":{"rendered":"

Mid-cap funds are the 101st to 250th top stocks on Nifty by Market Capitalization. They are generally companies with growth potential and evolving business models that are moderate-risk equity investments. Midcaps<\/a> tend to perform well for long-term horizons. For Midcaps, time in the market is more important than timing the market.<\/span><\/p>\n

In the last 15 years, Midcaps have generated higher market returns with higher return-risk ratios while having similar volatility levels as Largecaps across multiple benchmarks. This is why more investors are looking to Midcaps for their long-term goals. <\/span><\/p>\n

1. What is the best way to invest in Midcaps?<\/b><\/h2>\n

Midcaps over-perform in the long game with moderate risk. An average investor should look to manage the moderate risk of investing in Midcaps further. One appropriate way of investing in Midcaps is through the Nifty Midcap 150 Index, which distributes the risk across all 150 midcap stocks.<\/span><\/p>\n

The Nifty Midcap 150 Index aims to track the performance of 150 mid-market capitalization companies. <\/span><\/p>\n

–> To be considered for inclusion in NIFTY Midcap 150 index<\/span><\/p>\n

       Companies must form part of NIFTY 500 <\/span><\/p>\n

       AND <\/span><\/p>\n

       Companies should not form part of NIFTY 100 Index<\/span><\/p>\n

 <\/p>\n

–> Securities are included if <\/span><\/p>\n

        Rank based on full market capitalization is among top 225 <\/span><\/p>\n

        OR <\/span><\/p>\n

        Full market capitalization is 1.50 times of the last constituent in NIFTY Midcap 150 <\/span><\/p>\n

 <\/p>\n

–> Securities are excluded if <\/span><\/p>\n

        Rank based on full market capitalization falls below 275 <\/span><\/p>\n

        OR<\/span><\/p>\n

        If constituents get excluded from NIFTY 500 <\/span><\/p>\n

2. What makes the Nifty Midcap 150 index attractive for long term goals?<\/b><\/h2>\n