Less expense ratio implies better returns over the long term

Expense Ratio

ETF has not been able to closely match its benchmark returns

Tracking Error

ETF has been generating better price return than bank FD

Return vs FD Rates

Good time to consider, as ETF is not in overbought zone

Entry Point

A recent Ventura Securities study, “Are Smallcap Funds Risky,” reveals that smallcap funds allocate 8% to largecaps, 11% to midcaps, and 80% to smallcaps. Within the smallcap segment, 50% is in stocks ranked 251–500, 29% in 501–1,000, and just 2% beyond 1,000 by market cap.

Where are smallcap funds placing their bets? 50% in the Rs 251-500 crore market cap range, says Ventura Securities

Data from ACE Equity shows that the Nifty Smallcap 250 index posted an impressive 25% return, despite a 5.7% decline from its 52-week high.

Midcaps and Smallcaps drive 2024 gains: What lies ahead in 2025?

On December 24, six stocks from the mid-cap pack appeared in the RSI Trending Up scan, according to the stockedge.com data. It is an uptrend signal if the RSI value has crossed above 50 from below. “RSI trending up” means that the Relative Strength Index (RSI) values are increasing, suggesting strengthening momentum in the price of the stock. This can indicate potential upward movement and may be used by traders to identify buying opportunities. Strong Momentum

6 midcap stocks showed RSI Trending Up on December 24 - Strong Momentum

Dalal Street’s midcap and smallcap stocks gave high returns in 2024. Strong domestic consumption, government policies, and impressive retail participation boosted these indices. While the Sensex showed moderate growth, smaller stocks thrived. Experts are optimistic about midcaps and small-caps in 2025, anticipating continued government support and economic recovery.

D-Street small stocks reap big gains for investors in 2024

Anand Radhakrishnan, MD of Sundaram Mutual, highlights market trends and economic growth, pointing out a cyclical slowdown and discusses stock market outloook for 2025. He explains how mid and smallcap stocks outperformed largecaps and discusses the performance of private banks. Radhakrishnan emphasizes cautious policy measures and potential investment opportunities, noting the importance of global and domestic liquidity in the future.

Why small and midcaps yet again managed to beat largecaps in 2024? Anand Radhakrishnan answers

Nifty is down 10% from its peak, and with historical data showing a high probability of a Santa rally, market insiders predict potential gains for the year-end. Smallcap indices are expected to perform well, with sectoral rotation favoring midcaps and smallcaps during this period.

Nifty down 10% from peak. A Santa Claus rescue mission could be underway this Christmas

Gautam Duggad, Head of Research at Motilal Oswal, shared his insights on market performance and sectoral outlook. He expressed satisfaction with the Nifty’s 12% return given global turbulence. Motilal Oswal remains overweight on IT, particularly midcaps, due to their strong growth potential, while downgrading autos and remaining underweight on metals. Duggad expects IT to continue outperforming in 2025.

Expect 12% Nifty return on a 12-month basis; IT may outperform in CY25: Gautam Duggad

he Aditya Birla Sun Life (ABSL) Frontline Equity Fund has made a strong recovery in the past 2-3 years, delivering above-average returns while maintaining moderate risk. The fund, with a focus on large-cap stocks and a mix of midcaps, has outperformed its benchmark, the Nifty 100 TRI, in various timeframes, including 1-, 3-, 5-, and 10-year periods. With a steady, diversified portfolio and lower downside risk, the fund is a good option for investors aiming for long-term financial goals (7-10 years) through a systematic investment plan (SIP).

Why This Large Cap Fund Is Back In The Reckoning After A Lull

Indian shares slid on Thursday after the Federal Reserve indicated fewer interest rate cuts in 2025, sapping risk appetite and fanning worries of further foreign outflows from domestic stocks. However, 4 midcap stocks from the Nifty200 index defied the broader trend, scaling new all-time highs. Here’s the list: Rising High

Coforge, Indian Hotels among 4 midcap stocks hit all-time high on Thursday - Rising High

AMFI’s January reclassification will shift some midcap stocks to smallcap. This change is based on updated market cap thresholds. The new threshold is expected around Rs 329 billion. Companies like ITI & ZF Commercial may be affected. These changes impact mutual fund holdings

Midcaps on the move: AMFI’s January re-categorization could impact these stocks

11 midcap stocks, including new listings like Hyundai Motors, NTPC Green, Bajaj Housing Finance, and Swiggy, are poised to join the largecap club in January.

These 11 stocks can enter the largecap club. Do you own any?

NIPPON INDIA ETF Nifty Midcap scheme seeks to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty Midcap150 Index before expenses, subject to tracking errors