BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
Includes 150 companies ranked immediately after the Nifty 100, providing targeted exposure to the mid cap segment.
Spans multiple sectors, offering diversification within the mid cap universe.
Typically exhibits higher volatility than large cap stocks and more suitable for longer investment horizons.
Mid cap companies offer potential for long-term growth over time if they expand their operations.
The Nifty Midcap 150 index includes only mid-sized companies based on market cap, providing focused exposure to this segment. In comparison, the Nifty Large Midcap 250 index combines 100 large cap stocks from the Nifty 100 with 150 mid cap stocks from the Nifty Midcap 150, resulting in blended exposure across two market-capitalisation segments.
The Nifty LargeMidcap 250 covers a wide set of stocks, offering exposure to both large and mid cap segments within a single index.
By bringing together established companies and those in their growth stage, the index aims to provide blend of relative stability and long-term return potential, resulting in a more diversified market exposure.
The Nifty LargeMidcap 250 Index is currently trading below its long-term average valuation levels, potentially creating a suitable entry point for investors. Its PE ratio as on March 30, 2026, is 23.55, compared to its average PE ratio since inception (November 30, 2017) of approximately 31.3.
Moat investing
The fund follows a moat investing strategy, focusing on companies with sustainable competitive advantages.
Long-term view
Companies are selected based on their fundamentals and durable economic moats rather than short-term market trends.
Balanced portfolio
The fund seeks to blend the relative stability of large caps with the long-term growth potential of mid caps.
Investor convenience
Provides exposure to large and mid cap growth opportunities without the need to pick individual stocks, guided by professional fund management.
Call, chat or write to us if you
need investment help
Share your details and our experts will guide you.
The Nifty Midcap 150 index is a benchmark that tracks the performance of companies ranked between 101 and 150 on the National Stock Exchange based on full market capitalisation. These are mid cap companies, as defined by SEBI’s market capitalisation framework. As a result, the index serves as a benchmark for the mid cap segment of the market.
The index is constructed to include companies from multiple sectors, with constituent weights determined by free-float market capitalisation.
The index value is calculated using the free-float market capitalisation method, which reflects only the shares available for public trading.
The formula used is: Index value = (Current free-float market capitalisation/ Base free-float market capitalisation) X Base Index Value
The index is reviewed twice a year. During these reviews, companies may be added or removed based on predefined eligibility criteria.
Mid cap stocks tend to be volatile and sensitive to changes in the markets and economy. Here are some factors that may influence index movements:
• Economic growth cycles
Mid cap companies are often sensitive to economic cycles. During periods of economic expansion, some mid cap businesses may experience growth due to operational flexibility. During economic slowdowns, they may face greater pressure because of relatively limited financial buffers and narrower revenue streams.
• Interest rate environment
Rising interest rates increase borrowing costs and may affect corporate profitability. Changes in interest rates may also influence investor allocation between equities and fixed-income instruments, impacting mid cap valuations.
• Liquidity conditions
Periods of higher market liquidity may support increased participation in mid cap stocks. Conversely, tightening liquidity conditions may result in increased volatility and selling pressure.
• Currency movements
A depreciating rupee may raise input costs for mid cap companies that rely on imported raw materials, which can affect margins and earnings visibility.
• Regulatory changes
Changes in regulations and compliance requirements may have a proportionately higher impact on mid cap companies due to relatively limited resources compared to large cap firms.
• Global risk sentiment
Elevated global uncertainty may lead investors to adopt a more cautious stance, which can affect demand for mid cap stocks.
• Domestic consumption trends
Trends in domestic consumption may influence revenue growth for mid cap companies that cater to local markets.
• Corporate earnings growth
Quarterly earnings announcements can influence short-term price movements of mid cap stocks, reflecting changes in business performance and market expectations.
The Nifty Midcap 150 index offers the following potential benefits to investors:
• Broad diversification within mid caps
The index provides exposure to 150 mid-sized companies across multiple sectors. While diversification may help reduce the impact of individual stock performance, it does not eliminate overall equity market risk.
• Cost considerations
The index is tracked by passive investment products, which typically have lower expense ratios compared to actively managed funds.
• Simplified access to the mid cap segment
Index-based exposure reduces the need for individual stock selection and ongoing monitoring, offering a structured way to access the mid cap universe.
• Potential for long-term growth over time
Mid cap companies may offer potential for long-term growth over time compared to large cap companies, accompanied by relatively higher volatility. Such exposure may be more suitable for investors with a long investment horizon and a high tolerance for risk.
● Lumpsum or Systematic Investment Plans (SIPs) in index funds tracking the Nifty Midcap 150 to spread investments over time for rupee cost averaging.
● Mid cap exposure is commonly evaluated as a portion of overall equity allocation rather than as a standalone holding, given its higher volatility.
● Due to relatively higher volatility associated with mid cap stocks, longer investment horizons may be more appropriate when evaluating such exposure.
Investors cannot invest directly in an index. Exposure can be obtained through index funds or ETFs tracking this index, aiming to replicate its performance (subject to tracking error). Such schemes typically invest in the same stocks and in similar proportions as the index. Returns depend on index performance and prevailing market conditions.
Investments may be made through:
● The official website or application of the Asset Management Company
● AMFI-registered mutual fund distributors empanelled with the AMC
● Online investment platforms
● Offline through a distributor or by submitting a filled-out form to the AMC’s official point of acceptance.
Large cap companies are generally well-established with relatively diversified revenue streams, while mid cap companies are often in a phase of business expansion. Mid caps may respond more sharply to economic and market changes, which contributes to higher volatility as well as potential for long-term growth over time.
In the Nifty Midcap 150 index, constituent weight is determined by free-float market capitalisation. That means only the shares available for public trading are considered.
For example, if a company has 1 lakh publicly available shares priced at ₹30 per share, its free-float market capitalisation would be ₹30 lakh. (For illustrative purpose only).
So, although the index includes companies ranked between 101 and 250 by full market capitalisation within the Nifty 500, the influence of each company’s market value on index performance depends on its free-float market value.
It is an NSE benchmark index representing 150 mid-sized companies in terms of total market cap. The index is weighted by free-float market capitalisation.
Suitability depends on an investor’s investment horizon, risk tolerance, and overall asset allocation. Mid cap exposure involves relatively higher volatility and may be evaluated by investors with a long-term perspective.
The Nifty 100 represents the 100 largest companies by market capitalisation, while the Nifty Midcap 150 includes 150 companies ranked after the top 100 (i.e. from 101 to 150) in terms of market capitalisation.
A Nifty midcap index tracks companies that fall within the mid cap segment of the equity market, as defined by SEBI.
The Nifty 500 includes large cap, mid cap, and small cap stocks, whereas the Nifty midcap 150 includes only mid-sized companies (in terms of market cap).
As per the Nifty Midcap 150 Factsheet the five-year return for the Nifty Midcap 150 Total Return Index as on March 30, 2026, was 17.5%.
Source: NSE, Data as on March 30, 2026.
Past performance may or may not be sustained in future. Investors should refer to the latest factsheet for updated information.
Mid cap exposure may be suitable for long-term investors who are able to tolerate relatively higher volatility.
The index itself does not have a lot size. Lot sizes apply only to derivatives such as futures and options.
No market-linked investment can be considered safe. Additionally, mid cap exposure involves relatively higher risk compared to large cap exposure. Investors may evaluate suitability based on their individual risk profile and investment objectives.
Mid cap refers to companies classified as mid-capitalisation. It refers to companies that fall in the middle range of market capitalisation, meaning their total market value. Under SEBI’s market capitalisation framework, mid cap stocks are those ranked between 101 and 250 on recognised stock exchanges.
The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj Finserv AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
Need help planning your investments?
Bajaj Finserv Limited, an unregistered Core Investment Company (CIC) under RBI Regulations 2020, is a part of the renowned Bajaj Group.
One of India’s leading and most diversified financial services institutions, Bajaj Finserv Ltd provides simple financial solutions to crores of people every day through its group companies. Through continuous innovation, it strives to enrich the lives of communities across the length and breadth of the country and make financial security accessible to all.
Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
