Investing in the stock market can be a rewarding journey, especially when you understand the performance of various market indices over time. In this blog post, we will analyse the performance of several key market indices over the last 10 years, based on the data provided. This analysis will help investors make informed decisions about where to allocate their funds for optimal returns.
Top Performing Index Over 10 Years
The standout performer over the last decade is the NIFTY MICROCAP250, which has delivered an impressive return of 19.27%. This index includes the smallest companies in terms of market capitalization, which often have higher growth rates compared to larger companies. The high return indicates significant growth potential in microcap stocks, making them an attractive option for investors seeking high returns.
Other Notable Performers
Several other indices have also shown strong performance over the last 10 years:
- Nifty Midcap 150: 16.01%
- NIFTY MID SELECT: 15.16%
- Nifty MidSmallcap 400: 15.09%
- Nifty Midcap 50: 15.86%
These indices represent midcap companies, which are in the middle of the market capitalization spectrum. They offer a balance between growth potential and stability, making them a popular choice among investors.
Performance Trends
Midcap Indices
Midcap indices like Nifty Midcap 150 and NIFTY MID SELECT have shown robust performance with returns of 16.01% and 15.16%, respectively. These indices include companies that are well-established but still have room for growth. The strong performance of midcap indices suggests that these companies are able to capitalize on growth opportunities while maintaining a level of stability.
Smallcap Indices
Smallcap indices such as Nifty smallcap 250 and NIFTY Smallcap 100 have also performed well, with returns of 13.24% and 11.1%, respectively. These indices include smaller companies that can offer high growth but come with higher risk. The performance of smallcap indices indicates that these companies have been able to achieve significant growth, albeit with higher volatility.
Largecap Indices
Large cap indices like Nifty 50 and Nifty 100 have shown more modest returns of 10.89% and 11.08%, respectively. These indices include the largest companies by market capitalization, which tend to be more stable but offer lower growth compared to midcap and small cap indices. The performance of large cap indices suggests that these companies provide stability and steady returns, making them a safer investment option.
Broad Market Indices Return over last 10 years.
| Indices | 1M | 3M | 1Yr | 3Yr | 5Yr | 10Yr |
| Nifty 50 | -3.49 | -7.26 | 2.04 | 10.93 | 15.96 | 10.89 |
| Nifty Next 50 | -6.2 | -18.61 | -1.53 | 13.42 | 17.53 | 12.42 |
| Nifty 100 | -3.96 | -9.28 | 1.22 | 10.95 | 16.01 | 11.08 |
| Nifty 200 | -4.45 | -10.23 | 1 | 12.18 | 17.1 | 11.51 |
| Nifty 500 | -4.87 | -11.53 | 0.27 | 12.71 | 17.8 | 11.88 |
| Nifty Midcap 50 | -5.51 | -13.48 | -0.11 | 21.06 | 25.71 | 15.86 |
| NIFTY MIDCAP 100 | -6.91 | -14.8 | 0.16 | 20.11 | 24.34 | 14.93 |
| NIFTY Smallcap 100 | -8.09 | -20.48 | -6.73 | 15.22 | 22.05 | 11.1 |
| Nifty Midcap 150 | -6.58 | -14.74 | 0.54 | 19.45 | 24.08 | 16.01 |
| Nifty smallcap 250 | -8.46 | -21.15 | -6.5 | 16.79 | 24.49 | 13.24 |
| NIFTY SMALLCAP 50 | -7.16 | -20.16 | -2.23 | 17.23 | 22.42 | 9.55 |
| Nifty MidSmallcap 400 | -7.24 | -17.08 | -2.02 | 18.6 | 24.18 | 15.09 |
| NIFTY MID SELECT | -7.42 | -14.12 | 0.77 | 16.23 | 21.51 | 15.16 |
| NIFTY LargeMidcap 250 | -5.24 | -11.96 | 1.05 | 15.27 | 20.12 | 13.64 |
| NIFTY500 MULTICAP 50:25:25 | -5.66 | -13.58 | -0.64 | 14.71 | 20.33 | 13.01 |
| NIFTY MICROCAP250 | -9.5 | -21.74 | -2.06 | 27.52 | 37.96 | 19.27 |
| NIFTY TOTAL MKT | -5.04 | -11.93 | 0.16 | 13.1 | 18.22 | 12.1 |
| Nifty500 LargeMidSmall Equal-Cap Weighted | -6.26 | -15.03 | -1.37 | 15.88 | 21.63 | 13.53 |
Conclusion
The data indicates that midcap and microcap indices have outperformed large-cap indices over the last 10 years. Investors looking for higher returns might consider allocating a portion of their portfolio to midcap and microcap stocks, keeping in mind the higher risk associated with these investments. Diversifying across different market capitalizations can help balance the potential for high returns with the need for stability.
Final Thoughts
Investing in the stock market requires careful analysis and a clear understanding of market trends. By examining the performance of various market indices over the last decade, investors can make informed decisions that align with their financial goals. Whether you prefer the stability of large-cap stocks or the growth potential of midcap and microcap stocks, understanding these trends is key to successful investing.
Data Source: Nifty Indices