Nifty midcap 150 is an index many investors want to get their hands on. The companies in this index could have great unexplored potential to grow and could give your significant investment growth. But at the same time, some investors tend to stay away from such indices due to concerns related to quality. These investors might have inhibitions about some of these companies’ quality and growth prospects. But is there any way to use the growth of good quality companies in the index and avoid doing the rest? Let’s find out!
NIFTY midcap 150 quality 50 index
The midcap indices are an interesting area in stock markets today, and Nifty’s midcap 150 quality 50 indexes could be the answer you are looking for here. It is an index based on the original NIFTY midcap 150 index, sorted by a quality score. The quality score is determined by the index based on several performance parameters like the return on equity, financial leverage, and earnings per share growth of a company for the past five years.
The weightage of each stock in the NIFTY midcap 150 quality 50 indexes is based on this quality score.
Since the quality of the midcap companies is assessed like this and added to the grade 50 indexes based on weightage granted by the quality score, investors can rule out their concerns about quality and leverage the growth potential of these companies. This makes a good list of stocks to buy today. Let’s examine six reasons that could prove that the midcap index is worth a shot.
Potential to grow
As said above, companies in this index are mostly yet to be explored and could be future leading companies. By investing in them, you can pre-book your spot to maximize this potential growth.
Easy to Invest
The index is easy to invest in as well. SomSeveral funds and ETFs track them, and you can invest in them with just a single click.
Zero bias strategy
Nifty’s midcap 150 quality 50 index’s weightage and stock selection are completely based on the quality score. That means there is very limited involvement from the fund manager.
Lower expense ratio
Since the fund is not actively managed, the expense ratio associated with the fund is low. A higher expense ratio could offset the profits earned, and in the case of the Nifty midcap 150 quality 50 indexes, that concern is invalid.
Buying each company’s stock in the index will cost you much more than investing in a fund or ETF that follows the index, making it much more affordable.
Although past performance need not be indicative of how the fund will perform in the future, Nifty Midcap 150 quality 50 has a good history and underlines the index’s growth potential.
Happy investing! Nifty Midcap 150 Quality 50 is worth a shot, especially when investing in it is easy. But equally important is ensuring investing in this index is in line with your investment goals and risk appetite. To ensure this, you can consult a financial expert who will work with you to help you identify your investment horizon, and they can even help you figure out the stocks to invest in.