High-quality mid-cap stocks to consider for excellent returns!

Over the previous year, broader markets have outperformed the Nifty 50 by a wide margin. In this post, we will present the top ten solid mid-cap companies to explore.

In the previous year, the Nifty Mid-Cap 150 Total Returns Index (TRI) returned 34.9 per cent, while the Nifty 50 TRI returned 18.7 per cent. When we compare the median one-year, three-year, and five-year rolling returns of Nifty 50 TRI and Nifty Mid-Cap 150 TRI, we see that Nifty Mid-Cap 150 TRI outperforms Nifty 50 TRI in all three periods. However, one thing to keep in mind is that the risk for Nifty Mid-Cap 150 TRI is higher than for Nifty 50 TRI. 

As shown in the graph above, mid-caps outperform large-caps. Surprisingly, when we invest for a longer time horizon, the disparity between their median rolling returns grows. However, when we examine the median one-year, three-year, and five-year rolling returns of quality midcaps, they are 18 per cent, 18.1 per cent, and 19.4 per cent, respectively. The Nifty Mid-Cap 150 Quality 50 TRI has been deemed to be its representation. Now, these returns outperform the Nifty Mid-Cap 150 TRI and the Nifty 50 TRI by a wide margin across all timeframes. As a result, investing in quality mid-cap stocks makes far more sense.  

As a result, we've compiled a list of the top ten excellent mid-cap companies to explore.