Nifty MidSmallcap 400

This page provides insights into the Nifty MidSmallcap 400 Index, offering analysis of its performance, key features, and investment opportunities. Explore how this index represents a segment of the Indian equity market and supports diversified investment strategies.

What Is the Nifty MidSmallcap 400 Index?

The Nifty MidSmallcap 400 Index is a stock market index designed to reflect the combined performance of mid-cap and small-cap companies listed on the National Stock Exchange (NSE). It comprises 150 mid-cap stocks from the Nifty Midcap 150 and 250 small-cap stocks from the Nifty Smallcap 250, capturing a broad cross-section of growth-focused companies.

How Can You Invest in Nifty MidSmallcap 400?

Investing in the Nifty MidSmallcap 400 Index is simple. Here are the options:

• Direct Stocks: Purchase individual stocks listed in the index.
• Index Funds or ETFs: Invest in mutual funds or exchange-traded funds that track the index.

Why Go for Nifty MidSmallcap 400?

• Diversification: Access a wide range of sectors in mid-cap and small-cap segments.
• Accessibility: Index mutual funds and ETFs provide an easy way to invest.
• Growth Potential: Mid and small-cap companies often have higher growth potential as they operate in emerging industries.
• Transparency: Managed by NSE Indices, ensuring fair stock selection and weightage criteria.
• Liquidity: Constituent stocks are actively traded, ensuring ease of transactions.
• Long-Term Benefits: Offers potential for compounded growth over time.

Nifty MidSmallcap 400 Formula

The index is composed of:

• 150 stocks from the Nifty Midcap 150 Index.
• 250 stocks from the Nifty Smallcap 250 Index.

Formula: Index Value = (Current Free Float Market Capitalization / Base Market Capitalization) × Base Index Value

FAQs About the Nifty MidSmallcap 400 Index

1. What does the Nifty MidSmallcap 400 Index represent?

   It tracks 400 mid-cap and small-cap companies in the Indian equity market.

2. What is the purpose of this index?

   To benchmark the performance of mid-cap and small-cap segments.

3. How is the index calculated?

   Using the free-float market capitalization-weighted method.

4. What companies are included in the index?

   The index comprises companies from various sectors and is reviewed semi-annually.

5. How can I invest in the Nifty MidSmallcap 400?

   Invest through index funds, ETFs, mutual funds, or by purchasing stocks directly.

6. What are the risks of investing in this index?

   It carries higher risk than large-cap indices but offers the potential for higher returns.

7. Why invest in the Nifty MidSmallcap 400?

   To benefit from growth opportunities in mid-cap and small-cap companies.

8. How can I track its performance?

   Via Insights.Market, financial platforms, or funds tracking the index.

9. When is the index reviewed?

   Semi-annually in January and July.

10. What sectors are included in the index?

    Sectors like finance, IT, manufacturing, and healthcare are represented.