Which stock market cap segment gave most returns in last 10 years? Here’s an annual performance tracker

Micro-caps outperform, large-caps trail in the long run

LARGE-CAPS
The top 100 stocks by market capitalisation comprise the large-cap universe, known for relative stability. In 2025 so far, large-cap stocks have outperformed broader categories, driven by Foreign Portfolio Investment (FPI) preference. Additionally, attractive valuations compared to mid- and small-caps have aided this outperformance. Over the long term, the category has trailed other market-cap segments.

MID-CAPS
Stocks ranked 101 to 250 by market capitalisation fall under the midcap universe. The segment has shown mixed performance due to sector-specific challenges. While banking has done well, fast-moving consumer goods (FMCG) and consumer stocks continue to struggle amid weak urban demand. Over the long term, midcaps have emerged as the second-best performing category.

SMALL-CAPS
These are stocks ranked 251 and beyond by market capitalisation. Despite some recovery since April 2025, the category faced sharp corrections due to heightened volatility. With the recovery still not broad-based, a stock-picker’s approach may be more effective in this segment.

MICRO-CAPS
Stocks with a six-month average market-cap rank between 351 and 675, and those not part of the Nifty 500 index, are included in the micro-cap benchmark. Though the category has underperformed in 2025 so far, it has led performance since 2016, topping the charts in six of the past 10 years. It has also delivered the highest compounded return over the last decade.

Risk-reward ratio
Based on the risk-toreward ratio—measured by the coefficient of variation using average annual returns and standard deviation from 2016 to 2025—the largecap category offered the most favourable trade-off, while small-caps had the least optimal risk-toreward profile.

*2025 returns are YTD, based on 22 July 2025 closing values. Other years’ returns are calculated using closing values of indices between the first and last trading day. 10-year return is compounded average return, calculated between 22 July 2015 and 22 July 2025. M-caps defined as per Sebi. Indices considered: Large cap: Nifty 50 TRI, Mid cap: Nifty Midcap 150 – TRI, Micro cap: Nifty Microcap 250 – TRI, Small cap: Nifty Smallcap 250 – TRI. Source: ACE MF.