From the last 12 months Mid Cap and Small Cap is not doing good. Both the indexes have given the negative returns in the last 12 months. This is because the indexes have gone up like 20 to 30% in 2022 to 2023 time frame and now it's in consolidation. But if you ask me, I am more inclined towards the midcap than the small cap.
PC: Google.com
For me, I feel in the longer run the midcap will outperform the small cap. If you see the above chart, which is 20 years chart. You can see the Nifty 50 has given around 12%, small cap around 14% but the Midcap more than 18%. And that's why for me midcap is better opportunity to invest as of today than the smallcap or large cap.
Midcap sits in the sweet spot also because they all have something to offer for the investors along with that there is growth too. For large cap the growth seems to be stagnant whereas for the small cap you never know what will happen to the company down the line. So along with the growth, volatility is less in modcap as well as the stability is there. So overall it sits very nicely between the two.
Now the thing is if your investment horizon is less than 10 years, then don't even think of midcap or small cap. For you the best is large cap, or if you are investing for less than 5 years then plain FD is fine. But if your time horizon is more than 10 years, best is to have midcap in your portolfio. I am following a 60, 30 and 10 rule for Large Cap, Mid Cap andSmallCap for my long term portfolio. This gives a stability as well as growth in the longer run.
