What is the Nifty Midcap 150?
The Nifty Midcap 150 Index is a free-float market capitalization-weighted index of the 150 mid-cap stocks (ranked 101-250) listed on the National Stock Exchange (NSE) of India. The index was launched on April 1, 2005, with a base value of 1,000.
The Nifty Midcap 150 Index aims to measure the performance of the mid-cap segment of the Indian stock market. Mid-cap companies are those with market capitalizations that fall between those of large-cap and small-cap companies.
The Nifty Midcap 150 Index can be used for a variety of purposes, such as:
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Benchmarking fund portfolios
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Launching index funds and ETFs
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Creating structured products
Highlights of Nifty Midcap 150
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The index's base date is April 01, 2005, with an initial value of 1000.
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The index comprises 150 companies ranked 101-250 based on full market capitalization from the Nifty 500 Index.
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It measures the performance of mid-market capitalization companies.
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Since inception, the Nifty Midcap 150 Index has consistently outperformed the Nifty 100, Nifty Smallcap 250, and Nifty 500 Index, boasting a 17.0% annual growth rate compared to 15.4%, 15.7%, and 15.0% growth rate respectively.
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On a rolling return basis, the Nifty Midcap 150 Index has surpassed the Nifty 100 Index 75.8% and 96.3% of the time for 7-year and 10-year periods respectively.
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Companies within the index exhibit a broad spectrum of full market capitalization, ranging from ₹7,766 to 1,59,747 crores.
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Performance of Nifty Midcap 150 vs Other Indices
The Nifty Midcap 150 is poised to outperform established benchmarks, promising superior returns that will significantly contribute to wealth creation.
Following is the performance of Nifty MidCap 150 over the years with other indices:
| As on 31st July 2023 |
5 Years |
10 Years |
18 Years |
| Nifty MidCap 150 |
18.7% |
21.5% |
14.6% |
| NSE MidCap 100 |
15% |
17% |
14% |
| Nifty Small Cap 250 |
14% |
19% |
12.5% |
| Nifty 50 |
10.5% |
13.4% |
12.3% |
[Source: nseindia.com]
Which are the Constituent Stocks of the Nifty Midcap 150 by Weightage?
The top 10 stocks as of 31 July, 2023, for the Nifty MidCap 150 Index are as follows:
[Source: nseindia.com]
Other stocks of the Nifty Midcap 150 Index are:
Sectoral Representation of Nifty Midcap 150 Index by Weightage
Here is the sectoral representation of the Nifty Midcap 150 Index as of 31 July 2023, by weightage:
[Source: nseindia.com]
The maximum weightage of about 22.88% for the index is distributed towards the Financial Services sector, as of July 31, 2023. The minimum exposure of Nifty Midcap 150 Index is towards textiles stocks that accounted for only around 0.44% of the index.
What Are the Returns of Nifty Midcap 150 Index Over the Years?
As of July 31, 2023, the Nifty Midcap 150 has returned 16.97% since its inception.
Below are the returns of this index:
| Investment Period |
Price Returns (%) |
Total Returns |
| 1 year |
26.31% |
27.15% |
| 5 year |
16.23% |
17.25% |
| Since Inception |
15.54% |
16.97% |
[Source: nseindia.com]
Is the Nifty Midcap Index Fund a Smart Investment?
The Nifty Midcap Index Fund can be a smart investment for investors who are looking for growth, diversification, and exposure to high-growth companies.
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Mid-cap companies are typically growing faster than large-cap companies. This is because they are newer and have more room to expand. In the last 15 years, the Nifty Midcap 150 index has delivered an annual average return of 16.5%, compared to 12.5% for the Nifty 50 index.
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The Nifty Midcap 150 index is a diversified index, which means that it is composed of a wide range of companies from different sectors. This helps to reduce risk, as not all of the companies in the index will be affected by the same economic factors.
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Mid-cap companies are more focused on the Indian economy than large-cap companies. This means that they are less susceptible to the volatility of the global economy.
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The power of compounding can help investors to grow their wealth over the long term. By investing in a Nifty Midcap Index Fund, investors can take advantage of the power of compounding.
This index can be particularly appealing for investors seeking to capitalize on India's economic growth story while minimizing exposure to global economic fluctuations.
However, as with any investment, it's essential to conduct thorough research, consider your financial goals and risk tolerance.
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Nifty Midcap 150 Index Methodology
The Nifty Midcap 150 Index Methodology outlines how the index is constructed and maintained. It follows a transparent and rules-based approach to represent the performance of mid-sized companies listed on the NSE. Here's an overview of the methodology:
Eligibility Criteria:
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Companies will be included if their full market capitalization is at least 1.50 times that of the last constituent in the Nifty Midcap 150.
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Eligibility for newly listed securities is determined based on three-month data instead of the usual six-month period.
Exclusion Criteria:
Securities will be excluded if their market capitalization rank falls below 275 or if they are removed from the Nifty 500.
Index Re-Balancing:
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The index is re-balanced twice a year.
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Re-balancing is based on data from the six months ending January 31 and July 31 of each year.
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A four-week notice is provided to the market before any changes take effect.
Index Governance:
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Board of Directors: Oversees NSE Indices Limited.
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Index Advisory Committee (Equity): Provides advisory insights.
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Index Maintenance Sub-Committee: Manages index maintenance processes.
Many believe that investing in large-cap funds is better than mid-cap funds, but let's explore the truth behind this idea.
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Why are Midcap Funds Better than Large Cap Funds?
Mid-cap funds offer advantages over large-cap funds for several reasons:
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Domestic Growth Focus: Mid-cap funds often have a greater exposure to sectors that are oriented towards domestic growth. This positions investors to benefit from India's expanding economy, without being overly reliant on global market trends.
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Consumption and Investment Cycle: Investing in mid-cap funds can be a better way to tap into India's consumption and investment cycles. These funds tend to include companies that are well-positioned to benefit from increased consumer spending and government-led infrastructure initiatives.
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How to Take the Advantage of Nifty Midcap 150 Index?
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How to Buy a Midcap Fund from Policybazaar?
Follow the steps below:
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create one or log in.
Step 2: Go to the investments section within the platform.
Step 3: Input essential information such as your city, age, and name.
Step 4: Compare various plans using criteria like their performance, ratings, and other relevant information.
Step 5: Opt for the ICICI Prudential Investment Plan to take advantage of the Midcap Fund.
Step 6: Select "Invest Now" and proceed by following the prompts displayed on the screen to finalize your purchase.
Step 7: Provide the required KYC details and complete the payment procedure.
Step 8: Upon successful payment, you'll receive confirmation of your purchase.
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