Mid- and small-cap equities experience deeper and more frequent declines than large-cap stocks but have delivered stronger long-term returns, according to the latest FundsIndia Wealth Conversations report covering market data up to 30 November 2025.

The analysis finds that midcaps and smallcaps spend a substantially higher proportion of time below their previous peaks. Since 2004, the Nifty Smallcap 100 has traded more than 10% below its peak on 64% of days, while the Nifty Midcap 100 has been below the same threshold on 48% of days. In comparison, the Sensex traded more than 10% below its peak on 33% of days.

The frequency and magnitude of corrections are also notably higher. Drawdown data shows that smallcaps fell more than 30% from their peaks on roughly 37% of all trading days, while

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