_{Published on: 30 Aug, 2025 19:39}

NIFTY MIDCAP 150 Index return as of 29 August 2025:

• NIFTY Midcap 150 1-year return is -5.36% (29 August 2025)
• NIFTY Midcap 150 3-year CAGR is 20.47% (29 August 2025)
• NIFTY Midcap 150 5-year CAGR is 26.67% (29 August 2025)
• NIFTY Midcap 150 7-year CAGR is 16.71% (29 August 2025)
• NIFTY Midcap 150 10-year CAGR is 17.14% (29 August 2025)
• NIFTY Midcap 150 15-year CAGR is 14.63% (29 August 2025)
• NIFTY Midcap 150 20-year CAGR is 14.91% (29 August 2025)

 

 

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

The 1-year returns are highly volatile, with a wide standard deviation of 25.48% around a strong mean of 17.4%. This reflects the segment’s sensitivity to immediate economic and sentiment-driven shifts. For instance, returns swung from a steep -18.79% in 2019 (amid global trade tensions) to an exceptional 73.87% in 2014 and 68.59% in 2021 (driven by post-COVID recovery and liquidity influx). Despite six negative years out of twenty, the prevalence of fourteen positive years underscores the potential for high rewards, albeit with significant short-term risk.

• Average: +17.40%

• Range: -18.79% (2019) to +73.87% (2014)

• Volatility (σ): 25.48%—high volatility.

• Positive/Negative: 14 positive, 6 negative.

• Current (2025): -5.36%, reflecting recent market pressures.

 

3-Year CAGR: Smoothing Out the Peaks and Troughs
Extending the horizon to 3-year CAGR (15.32% mean) reduces volatility noticeably, with the standard deviation dropping to 11.53%. Compounding begins to soften the impact of annual swings, as seen in the impressive 34.44% return in 2016—fueled by domestic reforms and consumption growth. Only one period (2013: -7.96%) ended in negative territory, highlighting how a medium-term view mitigates short-term uncertainties while capturing structural growth stories.

• Average: +15.32%

• Range: -7.96% (2013) to +34.44% (2016)

• Volatility (σ): 11.53%—moderate volatility.

• Positive/Negative: 17 positive, 1 negative.

• Current (2025): +20.47%, indicating strong recent performance.

5-Year CAGR: Consistency Emerges
With a 5-year CAGR, performance stabilizes further, mean of 15.05% and standard deviation of 8.59%. All sixteen rolling periods ended positively, illustrating the power of time in weathering cyclical downturns. Returns ranged from 1.36% during the post-financial crisis hangover (2012) to 30.86% in 2024, reflecting broad-based bull markets, digital transformation, and sustained FDI inflows.

• Average: +15.05%

• Range: +1.36% (2012) to +30.86% (2024)

• Volatility (σ): 8.59%—lower volatility.

• Positive/Negative: 16 positive, 0 negative.

• Current (2025): +26.67%, among the highest on record.

 

 

 

 

7-Year CAGR: Steady Compounding
Fourteen seven-year periods exhibit remarkable stability.

• Average: +14.05%

• Range: +4.81% (2013) to +19.75% (2024)

• Volatility (σ): 4.27%—very low volatility.

• Positive/Negative: 14 positive, 0 negative.

• Current (2025): +16.71%, reflecting sustained growth.

The seven-year CAGR demonstrates the power of long-term compounding, with all periods positive and volatility falling to just 4.27%. The consistent performance, with a current value of +16.71%, underscores the index's resilience through various market and economic cycles.

10-Year CAGR: A Decade of Strength
Eleven ten-year periods deliver robust and stable long-term performance.

• Average: +15.11%

• Range: +9.05% (2020) to +21.56% (2023)

• Volatility (σ): 3.96%—minimal volatility.

• Positive/Negative: 11 positive, 0 negative.

• Current (2025): +17.14%, well above average.

A ten-year investment in the Midcap 150 has consistently been profitable, with an average return of +15.11%. The narrow range and low volatility highlight its role as a dependable wealth creator, with the current value of +17.14% signaling continued strong long-term health.

15-Year CAGR: Ultra-Long-Term Certainty
Six fifteen-year periods reveal near-absolute predictability.

• Average: +14.12%

• Range: +11.24% (2020) to +17.31% (2024)

• Volatility (σ): 2.11%—negligible volatility.

• Positive/Negative: 6 positive, 0 negative.

• Current (2025): +14.63%, in line with the historical average.

The fifteen-year horizon showcases the ultimate smoothing effect of time. Every period has generated solid returns between 11.24% and 17.31%, with volatility almost eliminated. This demonstrates the index's powerful role in long-term portfolio growth with high certainty.

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.