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Midcap, Smallcap & Broad Indices

beginner5 min read

Beyond the headline 50 — the indices that capture the rest of the listed market.

The NiftyA basket of stocks tracked together to represent a market. 50 only covers the giants. Broader indices capture the rest: NiftyA basket of stocks tracked together to represent a market. Next 50, Nifty MidcapMedium-sized companies between large- and small-caps. 100, Nifty SmallcapSmaller companies with high growth potential and high risk. 100, and combined ones like Nifty 500 (the 500 largest, ~95% of market capA company’s total market value: share price × number of shares.).

MidcapMedium-sized companies between large- and small-caps. and smallcapSmaller companies with high growth potential and high risk. indices can outrun large-caps for years — then fall twice as hard in a downturn. Their long-term return premium is real but comes with stomach-churning swings. Match the indexA basket of stocks tracked together to represent a market. to the volatilityThe size of price swings — not their direction. you can actually live through.
FAQs
Is a midcap index riskier than the Nifty 50?

Yes — midcaps and smallcaps swing far more, with deeper and longer drawdowns, even if their long-run returns can be higher. They suit longer horizons and steadier nerves.