Nifty LargeMidcap 250

About NIFTY Large Midcap 250 Index

NIFTY LargeMidcap 250 is a broad-based index on the National Stock Exchange (NSE) that measures the behaviour and performance of the large-cap and mid-cap segments of the equities market. It is a diversified blend of 250 equities that contains 100 large-cap stocks from NIFTY 100, while the remaining 150 firms are taken from the NIFTY  Midcap 150 index, with both indices weighed on a 50:50 basis.  

Sector Wise Representation

Approximately 78% of the average daily turnover and more than 87% of the market capitalization of all NSE-listed equities are accounted for by the Nifty 250 Largemidcap firms. These equities are from 19 different economic sectors. which includes Telecom, Realty, Services, Construction, FMCG, Consumer Durables, Chemicals, Power, Oil, Gas, and Consumable Fuels; IT; Capital Goods; Healthcare; Cars & Auto Components; Consumer Services; Metals & Mining; Construction Materials etc.

History of NIFTY LargeMidcap 250 Index

On November 30, 2017, the NIFTY LargeMidcap 250 index was introduced, with a base value of 1000 and an April 1, 2005 base date. Since its launch, the NIFTY LargeMidcap 250 share price has surpassed 9,000 at 21x P/E multiples. It is reconstituted every six months, with weights for large- and mid-cap stocks capped at fifty percent each, and it is rebalanced every three months. 

Management of NIFTY LargeMidcap 250 Index

NSE Indices Limited, formerly India Index Services & Products Limited, is the owner and manager of the NIFTY LargeMidcap 250 index. The BOD of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee make up the three-layer organization that oversees this index. 

Nifty Large Midcap 250 Index Stocks Selection Criteria

The following criteria should be met by the constituent stocks for them to be included in the NIFTY Large Midcap 250 index fund: 

1. The stock should be listed on the National Stock Exchange.
2. It should be included in the NIFTY Midcap 150 and NIFTY 100 indexes.
3. It should be subject to modifications each time the NIFTY 100 and NIFTY Midcap 150 index compositions are altered, either by adding or removing stocks on a semiannual basis.
4. It will adjust the stock weights every three months. 
    

How is the NIFTY Large Midcap 250 Calculated?

The index value is calculated as follows – 

Index value = Current free-float market capitalization/ (Base free-float market capitalization * Base Index Value) 

Based on 6 months' data, the Nifty Large Midcap 250 index chart is evaluated semi-annually, from January 31 to July 31 of each year serving as the cutoff dates. After providing the market with 4 weeks' notice, the replacement of stocks in the NIFTY LargeMidcap 250 (if any) takes effect on the final trading days of March and September. 
 

Should you Invest in the NIFTY LargeMidcap 250 index? Is the investment in NIFTY LargeMidcap 250 safe? 

NIFTY LargeMidcap 250 index-based portfolios have generated stellar total returns of 17.08% since their inception and 25.61% in the past 5 years. The returns have a strong correlation with the NIFTY 50 index and are not extremely volatile. Make sure you evaluate the Nifty 250 stocks list and analyze it before investing.