Also Read: Your Questions Answered: How is the Nifty 500 Index different from Nifty 50? Please elaborate The Nifty LargeMidcap 250 index is made up of 100 stocks from the Nifty 100 and 150 stocks from the Nifty Midcap 150 Index. But there's a big difference compared to other indices: it gives equal importance, or weightage, to both large and mid-sized companies. This means that half of the index is made up of stocks from the Nifty 100, and the other half is from the Nifty Midcap 150.
Normally, indices are based on free-float market capitalization, which means they give more weight to stocks that are more easily traded. However, the Nifty LargeMidcap 250 index doesn't follow this rule. If it did, around 80% of the index would be made up of large-cap stocks, and only about 20% would be mid-cap stocks.
I measured the performance of the Nifty Large Midcap 250 index by checking its returns over periods of 3 years, 5 years, and 7 years. Then, I compared these returns with those of other indices like the Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, and also with actively managed large & mid-cap funds.
Also Read: Mutual Funds: 4 key factors to look at before deciding to invest in index funds 3Y5Y7Y13.4612.5612.7418.7415.6816.6816.3311.713.216.1714.2314.8317.114.315.13 (Data between January 1, 2013, and January 1, 2024, and for TRI indices) It's important to note that investing in equity funds for only 3 years might not give you the full picture. I used this timeframe for analysis purposes to get a medium-term view.
Ideally, if you're investing in an equity fund, you should have a time horizon of 5 years or longer. To make it easier to understand, I converted the returns into ranks. So, if a number is higher for a rolling
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