_{Published on: 05 Jan, 2026 06:00}

NIFTY Midcap 150 Index returns as of 31 December 2025:

• NIFTY Midcap 150 1-year return is +5.37%
• NIFTY Midcap 150 3-year CAGR is +23.29%
• NIFTY Midcap 150 5-year CAGR is +23.16%
• NIFTY Midcap 150 7-year CAGR is +19.67%
• NIFTY Midcap 150 10-year CAGR is +17.36%
• NIFTY Midcap 150 15-year CAGR is +15.04%
• NIFTY Midcap 150 20-year CAGR is +14.78%

Introduction

We’re diving into the performance of the NIFTY MIDCAP 150 Index from 2006 to 2025. This dataset covers yearly returns (1-year) and longer-term growth rates (3-year, 5-year, 7-year, 10-year, and 15-year CAGRs). Our aim is to spot trends and understand what they mean for investors in India’s midcap space. We’ll look at averages, highs, and lows, and how often returns were positive or negative.

1-Year Returns: High Risk, High Reward

1-Year Returns: High Volatility, Substantial Rewards The 1-year returns exhibit extreme volatility, with a standard deviation of 39.04% around a robust mean of 21.88%. This highlights the midcap segment's vulnerability to short-term economic disruptions and market sentiment. For instance, returns plummeted to -65.48% in 2008 (due to the global financial crisis) but rebounded dramatically to 110.55% in 2009 (fueled by stimulus measures and recovery) and reached 76.14% in 2007 (amid a global emerging markets bull run). With five negative years out of twenty, the fifteen positive years emphasize the opportunity for significant gains, though accompanied by elevated short-term uncertainty.

• Average: +21.88%
• Range: -65.48% (2008) to +110.55% (2009)
• Volatility (σ): 39.04%—very high volatility.
• Positive/Negative: 15 positive, 5 negative.
• Current (2025): +5.37%, indicating moderate performance amid ongoing market adjustments.

3-Year CAGR: Moderating Volatility, Strong Growth Potential

The 3-year CAGR shows reduced but still notable volatility, with a standard deviation of 11.79% and a mean of 14.25%, reflecting smoother performance over medium horizons as economic cycles balance out. Notable lows include -8.27% in 2008 (impacted by the financial crisis spanning 2006-2008) and -4.86% in 2010 (lingering post-crisis effects and policy tightening), while the peak of 30.89% in 2014 (covering 2012-2014) was driven by recovery from earlier slowdowns and optimism following political reforms. Three negative periods out of eighteen underscore improving consistency, with fifteen positive outcomes supporting mid-term growth prospects.

• Average: +14.25%
• Range: -8.27% (2008) to +30.89% (2014)
• Volatility (σ): 11.79%—moderate volatility.
• Positive/Negative: 15 positive, 3 negative.
• Current (2025): +23.29%, showcasing solid recent compounding amid economic resilience.

5-Year CAGR: Increasing Stability, Consistent Returns

With a standard deviation of 8.37% and a mean of 14.91%, the 5-year CAGR demonstrates greater stability, as longer periods mitigate annual fluctuations and capture broader growth trends in midcap companies. The minimum of -3.34% in 2012 (encompassing the 2008 crisis and slow 2008-2012 recovery) contrasts with highs like 27.31% in 2024 (2020-2024 post-COVID surge) and 23.16% in 2025 (ongoing expansion). Only one negative instance out of sixteen highlights the reliability for patient investors, with fifteen positive periods affirming sustained value creation.

• Average: +14.91%
• Range: -3.34% (2012) to +27.31% (2024)
• Volatility (σ): 8.37%—low to moderate volatility.
• Positive/Negative: 15 positive, 1 negative.
• Current (2025): +23.16%, reflecting strong multi-year momentum in a recovering economy.

7-Year CAGR: Reliable Growth with Minimal Risk

The 7-year CAGR offers even more consistency, featuring a standard deviation of 5.48% and a mean of 14.54%, as extended timelines absorb shocks and emphasize underlying corporate expansion. The lowest point of 3.95% in 2014 (2008-2014, including crisis aftermath) is offset by peaks such as 22.41% in 2015 (2009-2015 recovery phase) and 20.10% in 2023 (2017-2023 growth cycle). With no negative periods out of fourteen, this horizon illustrates the segment's capacity for steady, positive compounding over time.

• Average: +14.54%
• Range: +3.95% (2014) to +22.41% (2015)
• Volatility (σ): 5.48%—low volatility.
• Positive/Negative: 14 positive, 0 negative.
• Current (2025): +19.67%, indicating dependable long-term performance.

10-Year CAGR: Steady Long-Term Appreciation

Boasting a standard deviation of 4.41% and a mean of 14.94%, the 10-year CAGR underscores reliable growth, with diversification across cycles minimizing variance. The minimum of 8.75% in 2017 (2008-2017, factoring in the financial crisis) compares to highs like 20.77% in 2023 (2014-2023 reform-driven era) and 20.10% in 2021 (2012-2021). All eleven periods are positive, reinforcing the benefits of a decade-long investment approach in midcaps.

• Average: +14.94%
• Range: +8.75% (2017) to +20.77% (2023)
• Volatility (σ): 4.41%—very low volatility.
• Positive/Negative: 11 positive, 0 negative.
• Current (2025): +17.36%, consistent with historical trends of sustained gains.

15-Year CAGR: Robust Endurance Through Cycles

The 15-year CAGR, with a standard deviation of 3.71% and a mean of 14.28%, exemplifies endurance, as ultra-long horizons fully incorporate booms and busts for balanced outcomes. The low of 9.23% in 2022 (2008-2022, dominated by crisis impacts) stands against the high of 20.12% in 2023 (2009-2023 recovery and growth). All six available periods are positive, highlighting the segment's resilience for generational investing.

• Average: +14.28%
• Range: +9.23% (2022) to +20.12% (2023)
• Volatility (σ): 3.71%—minimal volatility.
• Positive/Negative: 6 positive, 0 negative.
• Current (2025): +15.04%, aligning with proven long-haul stability.

20-Year CAGR: Limited Data, Positive Outlook

With only one data point available, the 20-year CAGR stands at 14.78%, offering a glimpse into ultra-long-term potential without volatility metrics due to the sample size. This single observation (spanning 2006-2025) captures diverse phases, including crises, recoveries, and reforms, suggesting steady compounding for extended holdings despite data constraints.

• Average: +14.78%
• Range: +14.78% (2025) to +14.78% (2025)
• Volatility (σ): N/A—insufficient data for volatility calculation.
• Positive/Negative: 1 positive, 0 negative.
• Current (2025): +14.78%, providing a baseline for historical full-cycle performance.

 

Best Use-Case

Horizon	Mean CAGR	Volatility	Downside	Best Use-Case
1-Year	18.3%	27.2%	30%	Tactical trades
3-Year	15.6%	11.1%	11%	Medium-term goals
5-Year	15.3%	8.5%	0%	Core SIP
7-Year	14.1%	3.7%	0%	Education / home corpus
10-Year	15.0%	3.7%	0%	Retirement satellite
15-Year	14.3%	2.4%	0%	Legacy planning

Conclusion

The NIFTY MIDCAP 150 Index data reveals a clear pattern: short-term returns can be unpredictable, but long-term investing offers steady growth. For investors in India’s midcap market, this suggests focusing on longer horizons to reduce risk and capture consistent returns. However, past performance isn’t a sure predictor of the future. You’d need to consider other factors, such as economic conditions or sector trends, to make informed choices. For now, the data suggests staying patient with midcaps, as the numbers tend to work in your favor over time.