Which funds are more suitable for Long-Term investing?- Large-Cap or Mid-Cap or Small-Cap?
- Advisoira
- Mar 28, 2021
- 1 min read
Most certainly we would assume that Small-Cap would outperform Mid-Cap which would, in turn, outperform Large-Cap! Right?
On the contrary, it's not so!
So I compared the returns of Nifty 50, Nifty Next 50 (NN50), Midcap 150 (M150), SmallCap 250 (S250).
Over a 7-year period, the returns were as follows-
NN50 (18.7%) > M150 (18.2%) > S250 (15.2%) > Nifty 50 (14.9%)
Over a 10-year period, the returns were as follows-
NN50 (23.6%) > M150 (22.8%) > S250 (17.4%) > Nifty 50 (16.9%)
Most often, small-cap and mid-cap showcase higher returns during a bull-run. But market crashes, pull down the average returns over the long-term.
So if you are thinking about investing, just invest in Nifty 50 and NN50 funds.
Cheers!
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