Exploring the Nifty LargeMidcap 250 Index: Bridging Large and Mid-Cap Potential
The Nifty LargeMidcap 250 index reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on National Stock Exchange (NSE), represented through the Nifty 100 and the Nifty Midcap 150 index respectively[1].
The aggregate weight of large cap stocks and mid cap stocks is 50% each and are reset on a quarterly basis. The index can be used for a variety of purposes such as benchmarking, creation of index funds and Exchange Traded Funds (ETFs).
The Nifty LargeMidcap 250 Index bridges the gap between the large-cap companies and mid-cap firms offering a compelling investment proposition:
- Diverse Portfolio: Includes a strategic mix of 50% large-cap and 50% mid-cap stocks, giving a balanced risk-return profile.
- Broader Market Exposure: Captures opportunities across India’s fast-evolving market landscape.
- Balanced Growth Potential: Provides access to the agility of mid-caps with the established presence of large-caps.
This blend positions the Nifty Largemidcap 250 Index as one of the unique index for those seeking to participate in India’s economic growth story.
Sector Representation
The index offers exposure to a broad range of industries, reflecting the structure of India’s economy. This diverse sectoral representation helps mitigate risks arising from concentrated investments in specific sectors making it a balanced choice for investors.You can understand more about the benchmark index here.
Rebalancing
The Nifty Largemidcap 250 Index is designed to maintain a 50:50 allocation between large-cap and mid-cap stocks, providing investors with a balanced risk-return profile. To achieve this, the index undergoes a carefully structured rebalancing process:
- Quarterly Rebalancing
Adjusts the weights of existing constituents to restore the equal allocation between large-cap and mid-cap stocks. - Semi-Annual Rebalancing
Updates both the constituents and their weights to maintain the equal allocation.
How to Invest in the Nifty Largemidcap 250 Index?
Investors today have multiple options for gaining exposure to the Nifty Largemidcap 250 Index. As of Sept 2023, there was only one index fund tracking it, but as of Mar 2025[2], five index funds offer access to this index. With most of these funds available at a minimum investment as low as ₹100 - they are accessible to a wide range of investors.
As investors increasingly recognize the benefits of diversification and cost-effective passive strategies, this index stands out as an option for participating in India's growth story. By aligning with broader trends toward simplicity and efficiency, it may appeal to both new and experienced investors seeking long-term opportunities in a growing economy.
Disclaimer - Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this article or document is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.
The Nifty Indices mentioned herein are owned by NSE Indices Limited. All information is provided for informational purposes only.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
Published on Jun 11, 2025