Could 2021 be the year of midcaps?


New Delhi, Jan 12 | Midcap stocks outperformed large cap stocks in 12 out of last 20 years, including in 2020.

A comparison of the large caps meaning Nifty 50 and midcaps meaning Nifty 100 Midcap Index shows that in the year 2020, midcaps outperformed large caps by 7 per cent. While large caps gave a return of 15 per cent, midcaps gave a return of 22 per cent, according to Harshad Patwardhan, CIO (equities), Edelweiss Asset Management Limited.

Patwardhan said mid and small caps could outperform large caps as growth is likely to be broad based on the way up.

Economic activity has bottomed out and recovery has surprised positively with the government actively encouraging revival with unrelenting focus. In addition, benign monetary conditions are likely to continue, he said.

Patwardhan said historical experience suggests good odds of outperformance.

After big mid/small cap underperformance over 2018 and 2019, is a good chance of a reversal already underway? Patwardhan said over an ideal investment horizon of 3-5 years, odds are very attractive. Front ending of returns is on the way up for midcaps, he said.

That FPIs don’t invest in midcaps is a myth, he said, as the shareholding of FPIs in the NSE 100 Midcap index is 16.4 per cent.

Patwardhan said over long periods of time, midcaps have outperformed large caps. Over a 10 and 15-year holding period, midcaps have posted better returns than large caps.

There are high odds of midcaps outperforming over 3-5 years investment horizon.

On a 3-year daily rolling return basis, 65 per cent of times midcap index has outperformed the large cap index. On a 5-year daily rolling return basis, 77 per cent of times midcap index has outperformed the large cap index.

Historically, the NSE Midcap100 Index has delivered positive returns in 14/20 years, with a CAGR of 16.5 per cent, Patwardhan said.

Patwardhan said the risks to this premise could be subsequent infection waves derailing economic recovery, global risk off events, global central banks reversing benign monetary policy due to inflation, and the Indian government going back on key reforms.

“The mid/small cap segment is likely to be more volatile and corrections are part of the game,” Patwardhan said.

Source: IANS

Sponsors Posts

1BHK Flats in Jabalpur for sale at budget price ?

1BHK Flats in Jabalpur for sale at budget price ?

Approximate 200+ 1BHK apartments or flats in Jabalpur available for sale at budget price

As per available data with approximate 200+ 1BHK Residential Flats for Sale in Jabalpur at a very low price. This is the right time for small property buyer to grab new property in Jabalpur with multiple benefits.

At this time Builder and Developer in Jabalpur also target to the maximum sale before the end of year. Also banks are giving low rate loan for housing. The 1BHK Flats for sale at multiple prime residential location in Jabalpur are available.

1BHK apartment’s starting price in Jabalpur is 12.0 Lac*

Some of the Real Estate Developer in Jabalpur are offering 1BHK Flat at Just 12.0 Lac (Starting Price) with multiple benefits like lift, parking, 24×7 water, CCTV and many more.

You can find more details about these from a Jabalpur Real Estate Website.

Most preferred residential location in Jabalpur

The most preferred residential locations in Jabalpur are Civil Lines, Vijay Nagar, Kachnar City, Napier Town, Wright Town, Lekha Nagar, Sadar, Sneh Nagar, Hathital and many more. is the best property portal for Jabalpur Real Estate market

The Bhaskar Property ( have property’s photos, video, walkthrough, location map and property browser with information. Also they provide the direct contact details of property owner and agent to whom a property buyer can directly contact.

Don’t forget to visit now.


Please enter your comment!
Please enter your name here