NIFTY Mid-Small Cap 400 Index

The NIFTY MidSmallcap 400 Index tracks the performance of 400 mid-sized and small-sized companies listed on the National Stock Exchange of India (NSE). This index is a good indicator of how these mid and small businesses are performing overall.

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What is the NIFTY Mid-Small Cap 400 Index in 2024?

The NIFTY Mid-Small Cap 400 Index represents the combined performance of the country's mid-cap and small-cap stocks. It includes 400 companies, with 150 from the mid-cap segment and 250 from the small-cap segment.

Key Features of NIFTY Mid-Small Cap 400 Index

  • NIFTY Mid-Small Cap 400 Index reflects the combined behaviour of the Nifty Midcap 150 and Nifty Smallcap 250 indices. 

  • The index is calculated using the free-float market capitalization method, meaning the total market value of all the shares that are freely available for trading is considered. 

  • The NIFTY MidSmallcap 400 Index is used for various purposes, such as: 

    • Benchmarking performance of investment portfolios

    • Launching index funds and ETFs (Exchange Traded Funds)

    • Creating structured financial products

Information About NIFTY Mid-Small Cap 400 Index

Particulars Details
Launch Date 11 April 2024
No. of Constituents 400
Base Date 1 April 2005
Base Value 1000
Calculation Frequency Real-Time
Methodology Free Float Market Capitalization
Index Rebalancing Semi-Annually

Performance of NIFTY Mid-Small Cap 400 Index vs. Other Indices

Nifty Midcap 150 Momentum 50 Index has outperformed the NIFTY Midcap 150 Index 100% of the time over the 1-year, 5-year and since inception.

As on 29th April 2024 3-Year Returns 5-Year Returns 10-Year Returns
Nifty MidSmall Cap 400 28.70% 28.00% 24.20%
Nifty MidCap 150 27.20% 23.00% 20.50%
Nifty Small Cap 250 27.40% 22.30% 18.20%
Nifty 50 15.20% 13.80% 12.70%
Nifty 500 18.70% 16.10% 14.50%

[Source: nseindia.com] The above-mentioned returns are total returns. Data updated as of April 30, 2024.

Top Constituent Stocks of NIFTY Mid-Small Cap 400 Index

Name of company Weight (%)
Max Healthcare Institute Ltd 1.46%
Indian Hotels Co. Ltd. 1.24%
Suzlon Energy Ltd. 1.03%
Persistent Systems Ltd. 0.99%
Cummins India Ltd. 0.99%
Yes Bank Ltd. 0.98%
Tube Investments of India Ltd. 0.96%
Lupin Ltd 0.94%
HDFC Asset Management Company Ltd 0.91%
CG Power and Industrial Solutions Ltd 0.84%

[Source: nseindia.com] Data updated as of April 30, 2024.

Top 10 Sectors Included in NIFTY Mid-Small Cap 400 Index

Sector Weightage (%)
Financial Services 20.34
Capital Goods  14.29
Healthcare 10.89
Automobile and Auto Components 7.03
Information Technology 6.61
Chemicals 6.19
Consumer Services  4.09
Consumer Durables  4.01
Realty  3.44
Oil, Gas & Consumable Fuels 3.30

[Source: nseindia.com] Data updated as of April 30, 2024.

Returns of NIFTY MidSmallcap 400 Index

Index Returns (%) QTD** YTD** 1 Year 5 Year Since Inception
Price Return 3.34 3.34 58.70 21.98 15.91
Total Return 3.48 3.48 59.75 23.08 17.33

[Source: nseindia.com] **QTD, YTD and 1-year returns are absolute returns. Returns for greater than one year are CAGR returns. Data updated as of April 30, 2024.

Benefits of Investing in NIFTY Mid-Small Cap 400 Index Benchmark

Investing in a Mid-Small Cap 400 Index like the Nifty MidSmallcap 400 in India can offer several advantages:

  • Growth Potential: Mid and small cap companies often grow faster than large-cap companies because they are in expansion mode and can gain market share quickly.

  • Diversification: Investing in a mid-small cap index provides diversification by spreading risk across multiple companies. This reduces the impact of poor performance from any single company.

  • Balanced Risk-Reward: Mid-cap companies tend to have lower volatility than small-cap stocks but offer better growth prospects than large-cap stocks.

  • Exposure to Emerging Sectors: Mid-cap and small-cap companies often lead in innovative industries, providing exposure to potentially high-growth areas.

NIFTY Mid-Small Cap 400 Index Fundamentals

P/E* P/B** Dividend Yield 
30.78 4.23 0.81

*P/E: Price-to-Earnings Ratio
**P/B: Price-to-Book Ratio
Data updated as of April 30, 2024.

NIFTY Mid-Small Cap 400 Index Methodology

The methodology followed by the Nifty Midsmallcap Index is mentioned below:

  1. Eligibility Criteria for Stock Selection

    • Formation of Nifty MidSmallcap 400: The Nifty MidSmallcap 400 index consists of all stocks that are part of both the Nifty Midcap 150 and the Nifty Smallcap 250 indices.

    • Incorporating Changes from Nifty Midcap 150 and Nifty Smallcap 250: If any stock is added to or removed from the Nifty Midcap 150 or the Nifty Smallcap 250, the same change will be reflected in the Nifty MidSmallcap 400.

    • Semi-Annual Review Process: The Nifty MidSmallcap 400 undergoes a review every six months, synchronized with the reviews of the Nifty Midcap 150 and Nifty Smallcap 250 indices.

  2. Index Rebalancing

    • Semi-Annual Schedule: The Nifty MidSmallcap 400 is re-balanced twice a year. The cut-off dates for data collection are January 31 and July 31.

    • Data Collection and Notification: For each semi-annual review, the average data from the previous six months leading up to the cut-off date is used. The market is given four weeks' notice before any changes are implemented.

  3. Index Governance

    • Professional Management

      All NSE indices are managed by a dedicated professional team.

    • Three-Tier Governance Structure

      The governance of NSE indices involves three levels of oversight:

      • The Board of Directors of NSE Indices Limited

      • The Index Advisory Committee (Equity)

      • The Index Maintenance Sub-Committee.

Plans having NIFTY Mid-Small Cap 400 Index as Benchmark

ICICI Prudential Life Insurance is the first company in the financial industry to offer the Midsmallcap 400 Index Fund with its various investment plans.

ICICI Pru Mid Small Cap 400 Index Fund:

  • The ICICI Pru Mid-Small Cap 400 Index Fund is an investment fund that tracks the Nifty MidSmallcap 400 Index. 

  • By investing in this fund, you are essentially investing in a broad range of medium-sized and smaller companies across various sectors, aiming to capture their growth potential.

  • It is a passive fund, meaning it aims to mirror the index's performance rather than actively picking individual stocks. 

  • This approach typically results in lower fees compared to actively managed funds. 

  • If you are interested in diversifying your portfolio with exposure to mid-cap and small-cap companies, this fund could be a straightforward option. 

Steps to Invest in the NIFTY Mid-Small Cap 400 Index through Policybazaar

  • Step 1- Enter Your Information: Start by entering your name and phone number in the provided form. 

NOTE: Your information is secure and will be used to tailor your investment options.

  • Step 2- Provide Basic Information: Next, enter your city, age, and full name. These details help customize your investment plan.

  • Step 3- Compare Investment Plans: Review the different plans available. Consider factors like performance, ratings, and other relevant data to help you decide which plan suits you best.

  • Step 4- Select an Insurer: Select ICICI Prudential Life Insurance to proceed with the Nifty Midsmallcap 400 Index Fund.

  • Step 5- Invest Now: Click "Invest Now" and follow the on-screen instructions to start the process of purchasing your selected plan.

  • Step 6- Complete KYC and Payment: As part of the investment process, you will need to submit your Know Your Customer (KYC) information. Once that is done, follow the prompts to make your payment.

  • Step 7- Receive Confirmation: After successful payment, you will receive confirmation that your investment in the Nifty Midsmallcap 400 Index Fund has been completed.

Frequently Asked Questions

  • What is the NIFTY Mid-Small Cap 400 Index?

    The NIFTY Mid-Small Cap 400 Index is a stock market index designed to track the performance of the top 400 mid-sized and small-sized companies listed on the National Stock Exchange of India (NSE).
  • What companies are included in the Nifty Midsmallcap 400 Index?

    The index includes all the companies that are part of the NIFTY Midcap 150 and NIFTY Smallcap 250 indices.
  • How are stocks weighted in the Nifty Midsmallcap 400 Index?

    The stocks in the Nifty Midsmallcap 400 Index are weighted based on free-float market capitalization, meaning that companies with a higher market capitalization have more weight in the index.
  • What is the purpose of the NIFTY Mid-Small Cap 400 Index?

    NIFTY Mid-Small Cap 400 Index serves as a benchmark for investors who are interested in the performance of the mid and small-cap segments of the Indian stock market. It allows them to track the overall health of these sectors and compare the performance of their investments.
  • Where can I find the current value of the NIFTY Mid-Small Cap 400 Index?

    You can find the live price and other information about the index on the website of the National Stock Exchange of India (NSE) or on various financial websites.
  • What are the benefits of investing in companies tracked by the NIFTY Mid-Small Cap 400 Index?

    The companies tracked by the NIFTY Mid-Small Cap 400 Index have the potential for high growth, but they also carry a higher degree of risk. Investors interested in this index should have a higher risk tolerance and a long-term investment horizon.
  • What is the 5-year return of the Nifty Midsmallcap 400 Index?

    The 5-year return for the Nifty Midsmallcap 400 Index is 28% based on average returns.
  • Is the ICICI Pru Mid Small Cap 400 Index Fund a good investment?

    The ICICI Pru Midsmallcap 400 Index Fund aims to track the performance of the Nifty Mid Small Cap 400 Index. Whether it is a good investment depends on your financial goals, risk tolerance, and time horizon.
  • When was the Nifty Midsmallcap 400 Index launched?

    The Nifty Midsmallcap 400 Index was launched on April 01, 2016. It provides a comprehensive representation of midcap and smallcap stocks in the Indian market.
  • What are the returns of a specific Nifty Mid Small Cap 400 Index Fund Direct Growth?

    The 1-Year and 5-Year average annual returns for Nifty Midsmallcap 400 Index Fund Direct Growth are 21.98% and 23.08%, which may vary with market conditions.
  • Does the ICICI Pru Mid Small Cap 400 Index Fund have a lock-in period?

    No, there is no lock-in period for investing in the ICICI Pru Life Midsmallcap 400 Index Fund. You can anytime switch your investments from this fund as per your investment strategy.
  • What are the benefits of investing in the Nifty Midsmallcap 400 Index?

    Investing in the Nifty Midsmallcap 400 Index provides exposure to a diversified mix of midcap and smallcap stocks in the Indian market. This offers the potential for higher growth compared to large-cap stocks, along with a broader scope of investment.

*Past 5 Year annualised returns as on 01-05-2024
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

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