Large Cap vs Mid Cap vs Small Cap Funds: Which is better for the long term?

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  • Опубліковано 19 сер 2024
  • freefincal.com...
    Click above link for the full study. Many young mutual fund investors assume that their portfolios should have more of mid cap and small cap stocks or mutual funds because these will outperform large caps over the long run. As usual, such assumptions are based on "intuition" without rigorous data support. In this post, let us compare large cap, mid cap and small cap indices to find out what kind of mix is suitable for a long term investor.

КОМЕНТАРІ • 98

  • @prateekgupta9849
    @prateekgupta9849 4 роки тому +14

    Hello sir , very educative video, you are correct in pointing out biases while selecting particular small cap funds but taking small cap TRI as benchmark has many flaws-
    1. It comprises of 250 stocks which will be having a lot of junk on their bottom prices , which fund managers have not bought or sold during the downfall.
    2. Good small cap stocks will move to Mid cap index but junk midcaps will be kicked out and form part of small cap index , thus resulting in poor performance of small cap index through out . But this doesn't happen with MF as fund managers have no compulsion of selling the best performing stocks .
    3. BSE small cap index is around 13k, in 2008 it was also having the same value, does it mean small caps have not given returns in 10 yrs ? It was around 11k during 2010. If you look at it , it is full of junk and penny stocks which no sane fund manager will buy. So, index doesn't give not even a close resemblance to small cap fund performance . We can compare fund category performance ( generally middle line in value research ) , which might not be a benchmark but still can do good work . This is my view .

  • @HarmanHundal01
    @HarmanHundal01 2 роки тому +7

    Summary of this video:
    * NiftyNext50 is equivalent to Midcaps in the Indian context. You don’t need any fund other than NiftyNext50 to enter Midcaps.
    * You can also combine Nifty50EqualWeight and NiftyNext50 in different ratios.

  • @manveersingh5822
    @manveersingh5822 3 роки тому +5

    Great Video!
    I don't understand, how you have less number of subscribers .. you deserve much much more .. Truely!

  • @rageshgr
    @rageshgr 5 років тому +11

    Great presentation ! NN50 is an amazing index. How I wish there was a NIFTY Alpha Low Volatility Index Find.

    • @RaghavChawla
      @RaghavChawla Рік тому

      Now there is

    • @jishnu18
      @jishnu18 5 місяців тому

      And still shit​@@RaghavChawla

  • @yatharththaker5735
    @yatharththaker5735 3 роки тому +1

    Sir you have awesome voice and I perfectly found the content which is was searching for. Thank you very much sir🙏🙏🙏

  • @Innvestor
    @Innvestor 5 років тому +1

    The S&P Small-Cap 600 Generated Better 5,7,10 & 15 Years Rolling Returns Compared To The S&P Mid-Cap 400 Being About The Same In Terms Of Volatility.

  • @princegoyal4323
    @princegoyal4323 5 років тому +2

    You are simply great and honest. 🤗

  • @RahulYadav-tj3vr
    @RahulYadav-tj3vr 5 років тому +1

    Too good!! Thanks a ton for working out the numbers and sharing it across for the benefit of all.

    • @pattufreefincal
      @pattufreefincal  5 років тому +2

      Thank you

    • @wcky652
      @wcky652 2 роки тому

      @@pattufreefincal ⁰⁰000⁰0⁰0⁰⁰⁰⁰⁰⁰00000⁰⁰

  • @stockinvesting3604
    @stockinvesting3604 5 років тому +1

    Small cap stocks are nice ways to add some spice to your portfolio
    @

  • @manveersingh5822
    @manveersingh5822 3 роки тому +2

    Sir, but one doubt .. actively managed funds are beating nifty or nifty next index funds hands down .. so index vs active for these funds.. what do you suggest?
    Example - axis mid cap.. axis small .. sbi small cap!

  • @RobinJesba
    @RobinJesba 2 роки тому

    It would be better if we have an updated video of this please

  • @jaikrishna741
    @jaikrishna741 4 роки тому +4

    Please make video of small cap convert to mid cap & mid cap coverted to large cap... Hit the like button of this comment if you also want this video...

  • @allcoolnamestaken7599
    @allcoolnamestaken7599 3 роки тому

    Man... This guy is pretty good

  • @sahiriaralam8577
    @sahiriaralam8577 17 днів тому

    Small cap managed funds are better

  • @AkshayKumar-gl9qn
    @AkshayKumar-gl9qn 5 років тому +1

    Thanks for the wonderful analysis once again sir. I think there is a minor glitch as rolling return years above and the time period shown in the graph do not match..

  • @saurabhkumartripathi252
    @saurabhkumartripathi252 5 років тому +2

    Sir pljjj suggest some nifty next 50 funds to pick.

  • @PrasadSignor
    @PrasadSignor 5 років тому

    Thanks for the session.
    It was really helpful and easy to follow.

  • @livingstonmech4250
    @livingstonmech4250 3 місяці тому

    How you get this values chart ...can you share the lonk

  • @arunranganath1752
    @arunranganath1752 Рік тому

    Can you please update this video as of Sept 2022?

  • @tejasdoshim
    @tejasdoshim 5 років тому +1

    Thank you sir
    Index investing is the future

  • @rajarshidixit124
    @rajarshidixit124 4 роки тому +1

    Hi Mr. Pattu,
    I'm still confused about ETF and actively managed fund. I fi go with the data for "L&T Midcap Fund" it shows it has outperformed nifty midacp 100 almost everytime while the returns for Nifty next 50 doesn't look attractive. So, how can I decide to go with nifty next 50 etf when their counterparts of active funds beat them almost everytime.
    Please answer. Will wait for your answer

  • @sudiptapatel4409
    @sudiptapatel4409 2 роки тому

    That's a new perspective. But how to buy SNP 400 index in India when one only invests in mutual funds.

  • @nihalyn
    @nihalyn 5 років тому +3

    I don't think there is anyone out there investing in fully in cnx midcap or bse small cap index , they have duds like kwality , reliance which no active fund manager will ever come close to. If one wants to compare small cap vs mid cap vs large cap might be better to pick a bunch of active funds of different fund houses and then do comparison.

    • @pattufreefincal
      @pattufreefincal  5 років тому +2

      very easy and very wrong to do that as it will be subject to survivorship bias

  • @santhureddy3001
    @santhureddy3001 5 років тому

    already invested next 50 past 1 year ,,sir u cleared all my doubts tq uuuu

  • @velannageshwaran
    @velannageshwaran 2 роки тому

    Simple and classic sir

  • @karanamsrinivas4139
    @karanamsrinivas4139 5 років тому +1

    Excellent presentation

  • @jyotiloomba464
    @jyotiloomba464 Рік тому

    is it worthy to pay subscription fees and buy small cases...if we can put more than 10 lakh...or we will increase portfolio in mutual funds only...

  • @vvgandhi1978
    @vvgandhi1978 2 роки тому

    Are you still on your conclusion about N50 30 + NN50 70 blend is you need only

  • @balasubramanian-dk2my
    @balasubramanian-dk2my 3 роки тому +1

    Sir great video , what about investing 50% in Nifty 50 index and 50% in Nifty Midcap 150 index of Nippon or Motilal Oswal ?

  • @sharadvenkataraman8211
    @sharadvenkataraman8211 5 років тому +2

    Very informative.
    I was wondering about the small cap index. The best performers of this index will move out of the index (on basis of increasing market share) and the laggards of the midcap index will enter this index (due to stagnation or decline of market share). Can this be a reason for its under-performance?

    • @pattufreefincal
      @pattufreefincal  5 років тому +3

      Thank you. Laggards will be demoted. Small caps that have done well will enter the midcap index. Of course, it is not so simple though!

  • @AAMIRSUHAILSHAIK
    @AAMIRSUHAILSHAIK 3 роки тому

    Nifty 100 and nifty n50 for large mid fund please answer

  • @veerasangayyamathapati1970
    @veerasangayyamathapati1970 5 років тому +2

    Sir please suggest A model portfolio allocation
    Large,mid,small.?

  • @monkeyfriends13
    @monkeyfriends13 4 роки тому

    Ten years is not enough for Small Caps to develop. Most people don't consider 10 years "long term." Good though process but this video will mislead people who overlooked the graph only showing a 10 year period.

  • @wilfredwiz
    @wilfredwiz 3 роки тому

    In the charts there is number 2156 what is that sir

  • @rajdeeptiwari1354
    @rajdeeptiwari1354 5 років тому

    Sir, thanks for your kind information & I like your concept 🙏

  • @trainerash393
    @trainerash393 5 років тому +2

    Very informative sir , i am young investor so I would like to have a midcap allocation with 70 - 30 ratio of NN50 and N50 , should I add an aggressive hybrid to this equity portfolio to have some sort of balance or just these two are enough for long term ?

    • @pattufreefincal
      @pattufreefincal  5 років тому

      What kind of balance would it provide?

    • @trainerash393
      @trainerash393 5 років тому

      @@pattufreefincal as 70:30 ratio would more volatile , I think aggressive hybrid would help in stabilizing portfolio ,please correct me if I'm wrong

    • @oppai_seeker6329
      @oppai_seeker6329 Рік тому

      ​@@trainerash393why not just reduce the allocation to nifty next 50 then😂😂 or why not add 30-40% in debt fund or based on whatever your risk appetite is, there are numerous way to reduce volatility which will give u more control and u are going towards hybrid funds😅😅

  • @santunubhaduri5353
    @santunubhaduri5353 5 років тому +1

    Thank u pattu sir...really a great explaination...now what should i do with the actively managed funds..shall i switch those to nifty index funds like N50&NN50?Kindly suggest.

    • @pattufreefincal
      @pattufreefincal  5 років тому

      Pl see
      freefincal.com/shift-active-mutual-funds-index-funds/

  • @pinakiroy9064
    @pinakiroy9064 5 років тому

    Thank you sir...can we have the reveiw of the quantum fund of fund in one of your next video

  • @amitarora5983
    @amitarora5983 5 років тому

    May be pattu sir : u can blend value investment strategy with this index 50:50. Rgds

  • @rajdeeptiwari1354
    @rajdeeptiwari1354 5 років тому +1

    Sir, what I do of my past investments in actively managed funds ? Please suggest me.🙏

  • @HellsAngel007
    @HellsAngel007 Рік тому

    Thank you sir.

  • @rahulnani07
    @rahulnani07 5 років тому +2

    Thank you sir.. you just saved me a ton of money

  • @devathirajan944
    @devathirajan944 5 років тому

    Very Nice sir..... Very informative....

  • @moirangthemvishalsingh
    @moirangthemvishalsingh 5 років тому

    Can you do one on sectoral funds..how can i learn about it to invest confidently..review of TATA digital India funds

    • @pattufreefincal
      @pattufreefincal  5 років тому +2

      You do not need them. See no point in talking about sectoral funds

  • @sarthakmohapatra3738
    @sarthakmohapatra3738 5 років тому +1

    Good vlog Bichu sir

  • @bubaibhattacharya8615
    @bubaibhattacharya8615 5 років тому +1

    Sir, what is about multi cap ...

  • @daydreamer7432
    @daydreamer7432 4 роки тому

    great video !

  • @kaveshram
    @kaveshram 5 років тому

    superb sir
    innovative study

  • @tarunfirestoned
    @tarunfirestoned 5 років тому

    Very informative

  • @ddnith
    @ddnith 5 років тому +1

    As per your analysis, Nifty 100 equal weight seems a very good option, but you seem not to recommend funds due to AMCs. What problems might occur if I go with equal weight funds of Principal or Sundaram?

    • @pattufreefincal
      @pattufreefincal  5 років тому +2

      There is no problem. You can choose them but if the AUM does not increase the fund may close and amc will return your money at current NAV

  • @Tejas.32
    @Tejas.32 5 років тому

    Fantastic information
    You are awesome sir

    • @Tejas.32
      @Tejas.32 5 років тому

      Sir could you please explain some value investing stocks

    • @Tejas.32
      @Tejas.32 5 років тому

      With your advice I take nifty blend for my child
      For me nifty next 50

    • @pattufreefincal
      @pattufreefincal  5 років тому

      @@Tejas.32 Thank you. I do not know why you are investing so cannot comment. Please search freefincal.com for stocks analysis tools

  • @abullaisnalband7717
    @abullaisnalband7717 5 років тому

    Grt Insight sir

  • @RP-vi7my
    @RP-vi7my 3 роки тому

    Good analysis sir

  • @ayushmannlive8284
    @ayushmannlive8284 5 років тому

    Are you from Karnataka?

  • @satishshinde451
    @satishshinde451 5 років тому

    Best

  • @arjunsr1296
    @arjunsr1296 5 років тому

    There is ICICI MCAP ETF

  • @subhadeep043
    @subhadeep043 5 років тому

    Sir what should i do for tax saving. How is hdfc elss.plz tell

    • @pattufreefincal
      @pattufreefincal  5 років тому

      I cannot comment on individual choices. I have a list of handpicked funds. Use that for elss or any other need

  • @skajaharalam9608
    @skajaharalam9608 5 років тому +1

    Hindi me vi video upload kariye sir.

  • @hridayparlia9110
    @hridayparlia9110 5 років тому

    Hindi me bola karo