We evaluate the rolling returns of Nifty 50, Nifty Subsequent 50, Nifty Midcap 150 and Nifty Smallcap 250. We publish this comparability sometimes. That is the September 2025 version.
Returns for a monetary instrument that fluctuates will be calculated in two methods:
Level-to-point returns: The efficient annual compounded development charge (CAGR) is calculated between two dates. You may calculate CAGR in your mutual fund and evaluate it with its benchmark from Jan. 1st to Dec. 31st, or you’ll be able to calculate CAGR for the 12 months so far (final three hundred and sixty five days). So, the beginning and finish dates will be handy for us.
What we have to know earlier than selecting a mutual fund, or extra importantly, earlier than deciding to stop a mutual fund scheme, is how constant the fund’s efficiency is compared with its benchmark. To do that, we have to use Rolling returns.
Calculating Rolling returns: To calculate rolling returns, we should once more determine on begin and finish dates. Allow us to say this can be a 10-month interval. We then calculate the proportion change within the fund’s NAV from day 1 (begin date) to day 7 (weekly return or IRR). We then calculate the weekly return from day 2 to day 8, day 3 to day 9, and so forth till we attain the final date. We repeat this train for the benchmark as nicely.
If all the dates in our NAV and index historical past are similar, we might decide what number of weeks the fund has outperformed its benchmark. If the fund has crushed its benchmark 75% of all out there rolling returns, it could possibly be rated excessive! That is the idea of our month-to-month fairness mutual fund efficiency consistency screeners. Those that want to generate graphs like those proven beneath can use the mutual fund evaluation device that’s a part of the freefincal investor circle.
Warning: Many individuals use rolling return charts incorrectly. For instance, it is unnecessary to take the typical of rolling returns. A rolling returns chart primarily tells you about danger through the unfold of returns and cyclic efficiency. Evaluating two time collection (index vs index or index vs fund, and many others.) reveals outperformance or underperformance. See extra: How you can interpret rolling return charts?
Nifty 50 vs Nifty Subsequent 50
The Nifty Subsequent 50 has nearly managed to maintain its head above the Nifty 50. Occasionally, the outperformance vanishes after which will increase. If you don’t recognize this and are keen to be affected person, Nifty Subsequent 50 (or for that matter, fairness isn’t for you!
Nifty Midcap 150 vs Nifty Subsequent 50
A lot of the latest surge in mid cap indices has evaporated. We warned about this within the earlier version – Nifty vs Nifty Subsequent 50 vs Nifty Midcap 150 vs Nifty Smallcap 250: Return Comparability April 2024.
Nifty Smallcap 150 vs Nifty Subsequent 50
Once more, as warned earlier, the surge within the small cap index didn’t final.
Nifty Midcap 150 vs Nifty Smallcap 150 vs Nifty Subsequent 50
Ten-year rolling returns comparability of Nifty Subsequent 50 TRI vs Nifty Midcap 150 TRI vs Nifty Smallcap 250 TRI as of Sep 2nd 2025The small cap index doesn’t outperform the mid cap index, as now we have identified a number of instances earlier than. We’ve got additionally proven that almost all actively managed small cap indices can not beat Nifty Midcap 150. See Energetic Mutual Funds Outperformance Consistency Report (March 2024). Readers can now maybe recognize why we insist on benchmarking lively small cap funds with the midcap 150 and never the cap 250: Why are you evaluating Small Cap Mutual Funds with a Mid Cap Index?!
So, suppose I’m searching for a companion to the Nifty 50 in my portfolio (not obligatory IMO). In that case, I can safely get rid of all lively funds (massive, mid, small, centered, flexicap, and many others) – see the above report for particulars. I also can get rid of small cap index funds.
So, ought to I select Nifty Midcap 150 index funds or Nifty Subsequent 50 index funds? As we noticed above, the Micap index has solely not too long ago outperformed the Nifty Subsequent 50 (which has not too long ago recovered a bit). A lot of that has gone now.
Has Nifty Subsequent 50 grow to be more and more large-capish attributable to larger market participation? (See our earlier report: Warning! Nifty Subsequent 50 is NOT a big cap index! Does this imply the reward for holding Nifty Subsequent 50 (contemplating the danger taken) could be decrease sooner or later? Once more, nobody can say.
Maybe it’s affordable to imagine that the Nifty Subsequent 50 can be much less dangerous and rewarding than the Nifty Midcap 150 in future. Maybe its danger premium in comparison with the Nifty 50 might also be decrease.
Does this imply the midcap index is a better option? Not fairly. Throughout a disaster, the mid cap index could be fairly risky with large drawdowns (fall from a most), and the way effectively fund managers might observe the index is unknown, as liquidity could be a concern attributable to massive influence prices.
Due to this fact, we advocate the next:
- Buyers keep on with a easy Nifty 50 or Sensex index fund. Nothing extra is required.
- If there’s a sense of FOMO, then a small publicity to Nifty Subsequent 50 is enough. This may be irritating to carry sometimes, however that can be true of the mid cap index. The issue with FOMOI is that, by definition, it doesn’t know when to attract the road! There is no such thing as a such factor as FOMO sparsely!
- See Handpicked Checklist of Mutual Funds (PlumbLine) for our fund suggestions.
Do share this text with your folks utilizing the buttons beneath.
Use our Robo-advisory Instrument to create a whole monetary plan! ⇐Greater than 3,000 buyers and advisors use this! Use the low cost code: robo25 for a 20% low cost.Plan your retirement (early, regular, earlier than, and after), in addition to non-recurring monetary objectives (corresponding to youngster training) and recurring monetary objectives (like holidays and equipment purchases). The device would assist anybody aged 18 to 80 plan for his or her retirement, six different non-recurring monetary objectives, and 4 different recurring monetary objectives with an in depth money movement abstract.
🔥You can too avail large reductions on our programs and the freefincal investor circle! 🔥& be a part of our neighborhood of 8000+ customers!
Monitor your mutual funds and inventory investments with this Google Sheet!
We additionally publish month-to-month fairness mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility inventory screeners.
You may observe our articles on Google Information
We’ve got greater than 1000 movies on YouTube!
Be part of our WhatsApp Channel
Podcast: Let’s Get RICH With PATTU! Each single Indian CAN develop their wealth!
You may watch podcast episodes on the OfSpin Media Mates YouTube Channel.
🔥Now Watch Let’s Get Wealthy With Pattu தமிழில் (in Tamil)! 🔥
- Do you may have a remark concerning the above article? Attain out to us on Twitter: @freefincal or @pattufreefincal
- Have a query? Subscribe to our e-newsletter utilizing the shape beneath.
- Hit ‘reply’ to any e-mail from us! We don’t provide personalised funding recommendation. We will write an in depth article with out mentioning your identify when you have a generic query.
Be part of 32,000+ readers and get free cash administration options delivered to your inbox! Subscribe to get posts through e-mail! (Hyperlink takes you to our e-mail sign-up kind)
About The Writer
Dr M. Pattabiraman(PhD) is the founder, managing editor and first creator of freefincal. He’s an affiliate professor on the Indian Institute of Expertise, Madras. He has over 13 years of expertise publishing information evaluation, analysis and monetary product improvement. Join with him through Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You will be wealthy too with goal-based investing (CNBC TV18) for DIY buyers. (2) Gamechanger for younger earners. (3) Chinchu Will get a Superpower! for teenagers. He has additionally written seven different free e-books on numerous cash administration subjects. He’s a patron and co-founder of “Payment-only India,” an organisation selling unbiased, commission-free aum impartial funding recommendation.
Our flagship course! Study to handle your portfolio like a professional to attain your objectives no matter market circumstances! ⇐ Greater than 3,500 buyers and advisors are a part of our unique neighborhood! Get readability on easy methods to plan in your objectives and obtain the mandatory corpus regardless of the market situation is!! Watch the primary lecture free of charge! One-time cost! No recurring charges! Life-long entry to movies! Scale back worry, uncertainty and doubt whereas investing! Discover ways to plan in your objectives earlier than and after retirement with confidence.
Enhance your revenue by getting individuals to pay in your expertise! ⇐ Greater than 800 salaried staff, entrepreneurs and monetary advisors are a part of our unique neighborhood! Discover ways to get individuals to pay in your expertise! Whether or not you’re a skilled or small enterprise proprietor who desires extra purchasers through on-line visibility or a salaried particular person wanting a facet revenue or passive revenue, we are going to present you easy methods to obtain this by showcasing your expertise and constructing a neighborhood that trusts and pays you! (watch 1st lecture free of charge). One-time cost! No recurring charges! Life-long entry to movies!
Our e book for teenagers: “Chinchu Will get a Superpower!” is now out there!
Most investor issues will be traced to a scarcity of knowledgeable decision-making. We made unhealthy choices and cash errors once we began incomes and spent years undoing these errors. Why ought to our youngsters undergo the identical ache? What is that this e book about? As dad and mom, what wouldn’t it be if we needed to groom one capacity in our youngsters that’s key not solely to cash administration and investing however to any side of life? My reply: Sound Resolution Making. So, on this e book, we meet Chinchu, who’s about to show 10. What he desires for his birthday and the way his dad and mom plan for it, in addition to educating him a number of key concepts of decision-making and cash administration, is the narrative. What readers say!
Should-read e book even for adults! That is one thing that each mother or father ought to educate their children proper from their younger age. The significance of cash administration and resolution making based mostly on their desires and desires. Very properly written in easy phrases. – Arun.
Purchase the e book: Chinchu will get a superpower in your youngster!
How you can revenue from content material writing: Our new e-book is for these fascinated about getting facet revenue through content material writing. It’s out there at a 50% low cost for Rs. 500 solely!
Do you wish to test if the market is overvalued or undervalued? Use our market valuation device (it’ll work with any index!), or get the Tactical Purchase/Promote timing device!
We publish month-to-month mutual fund screeners and momentum, low-volatility inventory screeners.
About freefincal & its content material coverage. Freefincal is a Information Media Group devoted to offering unique evaluation, reviews, opinions and insights on mutual funds, shares, investing, retirement and private finance developments. We achieve this with out battle of curiosity and bias. Observe us on Google Information. Freefincal serves greater than three million readers a 12 months (5 million web page views) with articles based mostly solely on factual info and detailed evaluation by its authors. All statements made can be verified with credible and educated sources earlier than publication. Freefincal doesn’t publish paid articles, promotions, PR, satire or opinions with out information. All opinions can be inferences backed by verifiable, reproducible proof/information. Contact info: To get in contact, use this contact kind. (Sponsored posts or paid collaborations won’t be entertained.)
Join with us on social media
Our publications
You Can Be Wealthy Too with Purpose-Based mostly Investing
Revealed by CNBC TV18, this e book is supposed that can assist you ask the correct questions and search the proper solutions, and because it comes with 9 on-line calculators, it’s also possible to create customized options in your life-style! Get it now.
Gamechanger: Overlook Startups, Be part of Company & Nonetheless Stay the Wealthy Life You Need
This e book is supposed for younger earners to get their fundamentals proper from day one! It can additionally provide help to journey to unique locations at a low value! Get it or reward it to a younger earner.
Your Final Information to Journey
That is an in-depth dive into trip planning, discovering low cost flights, price range lodging, what to do when travelling, and the way travelling slowly is healthier financially and psychologically, with hyperlinks to the net pages and hand-holding at each step. Get the pdf for Rs 300 (instantaneous obtain)
