Archive · 27 Jul 2026
20 Years of Market Data on Large-, Mid-, and Small-Caps
Over the past 20 years, mid- and small-cap stocks in India have shown strong returns during good market times but have fallen more during bad times.
Large-cap stocks, on the other hand, provide better protection during market downturns.
Niranjan Avasthi from Edelweiss Asset Management suggests that investors should choose between these types of stocks based on their belief in India's economic growth.
If you think the economy will do well, investing in mid- and small-caps can lead to higher returns.
If you're worried about the economy, large-caps are safer.
Mid- and small-cap stocks have delivered stronger returns during strong market cycles over the past 20 years.
Large-cap stocks offer better downside protection during weak market years.
In 2009, mid- and small-caps outperformed large-caps with returns of 113.9% and 117.4% respectively.
During the 2008 financial crisis, large-caps declined less than mid- and small-caps.
Investors should align their portfolio with their economic outlook, favoring mid- and small-caps for growth and large-caps for safety.
- Who
- Niranjan Avasthi, President at Edelweiss Asset Management
- What
- Analysis of 20 years of market data on large-, mid-, and small-caps
- When
- 2008, 2011, 2018 (weak years), 2009, 2014, 2017, 2021, 2023, 2024 (strong years)
- Where
- India
- Why
- To understand the performance and potential of different market caps in varying economic conditions
Mid- and Small-Caps
Large-Caps
Performance in Strong Market Cycles
Mid- and Small-Caps
Mid- and small-caps deliver significantly stronger returns during strong market cycles.
Large-Caps
Large-caps generally hold up better during weak markets.
Downside Protection
Mid- and Small-Caps
Mid- and small-caps experience steeper declines in weak years.
Large-Caps
Large-caps offer better downside protection in difficult years.
- 2009 Returns
- Nifty 100: 84.9%, Nifty Midcap 150: 113.9%, Nifty Smallcap 250: 117.4%
- 2017 Returns
- Nifty 100: 34.2%, Nifty Midcap 150: 56.6%, Nifty Smallcap 250: 60.2%
- 2024 Returns
- Nifty 100: 13%, Nifty Midcap 150: 24.5%, Nifty Smallcap 250: 27.2%
- 2008 Decline
- Nifty 100: 53.1%, Nifty Midcap 150: 64.9%, Nifty Smallcap 250: 68.6%
- 2011 Decline
- Nifty 100: 24.5%, Nifty Midcap 150: 30.2%, Nifty Smallcap 250: 34.3%