What is the Nifty Midcap 150?
The Nifty Midcap 150 Index is a benchmark index that tracks the performance of the 150 largest mid-cap companies listed on the National Stock Exchange (NSE) of India. This index falls within the broader NIFTY 500 Index of NSE. The Nifty Midcap 150 Index was launched on 01 April 2005 with a base value of 1,000.
Mid-cap companies are those with market capitalizations that fall between those of large-cap and small-cap companies.
The Nifty Midcap 150 index represents a wide range of sectors, including financial services, technology, consumer goods, and industrials.
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Objective of NIFTY Midcap 150 Index
The Nifty Midcap 150 Index aims to fulfil the following purposes:
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Benchmark the Nifty Midcap 150 Index fund portfolios
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Facilitate the creation of index funds, ETFs, futures contracts, and structured products
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Provide investors with a transparent and unbiased measure of the performance of the mid-cap of mid-cap Indian Companies
Performance of Nifty Midcap 150 vs Other Indices
Following is the performance of total returns of Nifty MidCap 150 over the years with other indices:
| As of 31st July 2023 |
3 Years* |
5 Years* |
10 Years* |
| Nifty MidCap 150 |
31.19% |
21.29% |
21.15% |
| NSE MidCap 100 |
31.78% |
19.92% |
19.22% |
| Nifty Small Cap 100 |
31.78% |
19.92% |
19.22% |
| Nifty 50 |
18.43% |
14.91% |
13.39% |
*Total Returns as of 26 October 2023
# Source: NSE Indices
The Nifty Midcap 150 is poised to outperform established benchmarks, promising superior returns that will significantly contribute to wealth creation.
Performance of Nifty Midcap 150 During Bull Market Years (in % p.a.)
| Index |
CY 2007 |
CY 2009 |
CY 2014 |
CY 2017 |
CY 2021 |
CY 2023 |
| Nifty MidCap 150 |
76.1 |
110.6 |
60.3 |
54.3 |
46.8 |
33.4 |
| Nifty 50 |
54.8 |
75.8 |
31.4 |
28.6 |
24.1 |
8.50 |
Source: NSE, Morningstar Direct
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During strong market periods, the Nifty Mid-cap 150 index has significantly outperformed the Nifty 50 index (comprising large-cap businesses).
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In the year-to-date for 2023, mid-cap companies have considerably outperformed their large-cap counterparts.
Performance of Nifty Midcap 150 During Bear Market Years (in % p.a.)
| Index |
CY 2008 |
CY 2011 |
CY 2018 |
CY 2019 |
1 Feb 2020 to 23 Feb 2020 |
| COVID Market Correction |
| Nifty MidCap 150 |
-65.5 |
-32.1 |
-13.3 |
-0.3 |
-37.5 |
| Nifty 50 |
-51.8 |
-24.6 |
3.2 |
12.0 |
-36.40 |
Source: NSE, Morningstar Direct
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In bear markets, the Nifty Mid-cap 150 index has lagged behind the Nifty 50 index (large-cap).
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Mid-cap stocks tend to face greater downside risk in market downturns due to their higher-risk nature.
Which are the Constituent Stocks of the Nifty Midcap 150 by Weightage?
The top 10 stocks as of 26 October 2023, for the Nifty MidCap 150 Index are as follows:
Sectoral Representation of Nifty Midcap 150 Index by Weightage
Here is the sectoral representation of the Nifty Midcap 150 Index as of 26 October 2023, by weightage:
The maximum weightage of about 21.74% of the index is distributed towards the Financial Services sector, as of October 26, 2023. The minimum exposure of the Nifty Midcap 150 Index is towards Construction companies that accounted for only around 0.42% of the index.
What Are the Returns of Nifty Midcap 150 Index Over the Years?
Below are the returns of Nifty Midcap 150 index as of October 26, 2023:
| Investment Period |
Price Returns (%) |
Total Returns (%) |
| 1 Years |
22.07% |
22.78% |
| 3 Years |
30.25% |
31.33% |
| 5 Years |
20.00% |
21.03% |
| 10 Years |
19.84% |
21.02% |
| Since Inception |
15.82% |
17.25% |
[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 10 years, the Nifty Midcap 150 index has delivered average total returns of 21.15%, compared to 13.39% 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 and consider your financial goals and risk tolerance before making any investments.
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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 is an overview of the methodology:
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Criteria:
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Companies must be a part of the Nifty 500 to be considered for the Nifty Midcap 150 index.
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Companies will be included if their rank based on full market capitalization is within the top 225.
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The company's market capitalization should be at least 1.50 times that of the last company in the Nifty Midcap 150 index.
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Newly listed securities are evaluated based on three months of data rather than the usual six-month period.
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Exclusion Criteria: The company will be excluded if its market capitalization rank falls below 275 or if it is excluded from the Nifty 500 index.
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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.
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Index Governance:
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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Diversified Sector Exposure: Mid-cap funds typically provide more diversified sector exposure compared to large-cap funds. This diversification can reduce risk by minimizing the impact of poor performance in any single sector.
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Domestic Growth Focus: Mid-cap funds often have 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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How to Take Advantage of the Nifty Midcap 150 Index?
You can invest wisely with the Nifty Midcap 150 Index to earn big profits. The index has yielded a 21.15% return over the past ten years, demonstrating its promise. Explore easy investment options through Bajaj Allianz Unit Linked Insurance Plans (ULIP) like Smart Capital Assure Goal, Invest Protect Goal, Smart Wealth Goal II, and Goal Assure II.
Invest in the Bajaj Allianz Midcap Index Fund available under these best ULIP plans to grab this opportunity to build your wealth with a reliable partner.
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How to Buy a Midcap Fund from Policybazaar?
Follow the steps mentioned below to purchase the best NIFTY Midcap 150 Index Fund from Policybazaar:
Step 1: Start by visiting the Policybazaar website or app. Log in to the website or create an account if you don't have one.
Step 2: Go to the investments section within the platform.
Step 3: Enter 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: Select from the Bajaj Allianz Investment Plans from the following investment options to take advantage of the Nifty Midcap Fund Index 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 will receive confirmation of your purchase.
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