While the downside seen in high-flying small and midcaps looks big on the immediate scale, it is quite small in the context of the large returns of the past year. Nifty Midcap100 and Nifty Smallcap100 are down 5% and 10% in the past one month but they are still up 53% and 58%, respectively, in the past one year.
Largecaps look better as smallcaps price in strong growth: Franklin Templeton’s Arihant Jain
Largecap stocks offer a better risk-reward balance than mid- and small-caps as higher growth expectations are already priced into smaller companies, according to Arihant Jain
September 6, 2026