year equity performance tracker: Large, mid, small and micro? Which cap has delivered highest return in last 10 years?

TrendMap: A 10-Year Equity Performance Tracker

Welcome to TrendMap, your quick guide to the performance of different investment segments. No single segment always leads. In this edition, we present a 10-year equity performance tracker, ranking annual returns across market cap segments.

Market Cap Segments Performance in 2025

Stability and strong fundamentals supported large caps, whereas small and micro caps underperformed amid heightened investor caution in 2025.

Large Cap: A Turning Point in Investor Behaviour

• Top 100 stocks in terms of market capitalisation fit in the large cap universe.
• The segment's success in 2025 highlighted a turning point in investor behaviour, as uncertainty clouded the macro environment.
• Investors favoured stability over aggressive growth, gravitating toward companies with recognisable brands, proven models, and predictable earnings.

Mid Cap: Modest Gains Amid Consolidation

• Stocks that rank between 101 to 250 in terms of market cap belong to the mid cap universe.
• The segment posted modest gains during the year of consolidation and profit-taking, driven by stronger operational resilience and cyclical tailwinds.
• Key sectors with significant exposure include industrials, capital goods, PSU banks, and real estate.

Small Cap: Struggled Amid Profit-Booking and Weak Earnings

• These are stocks ranked 251 onwards in terms of market cap.
• The segment struggled in 2025 due to profit-booking, weak earnings trends, liquidity pressures, foreign capital outflows, and sensitivity to currency and supply chain shocks.

Micro Cap: Worst Performer in 2025

• The micro cap index includes the top 250 companies beyond the Nifty 500 index constituents.
• The category ranked as the worst performer in 2025, due to excessive valuations, heightened risk aversion, lackluster earnings, and a higher debt load relative to large caps.

Long-Term Performance: Highest Risk, Highest Reward

The decade's best performance came from the smallest, most volatile segment, while the largest, most stable segment delivered the lowest return.

The micro cap segment's 21.5% CAGR confirms the market principle that the highest risk can yield the highest reward over a long period.

On the other hand, the large cap segment continues to play a defensive role, with a 14.1% CAGR, the lowest among the four segments.

The segment's vast size constrained its growth potential compared to the smaller segments.

*2025 returns are YTD and are based on 25 November 2025 closing values. Other years' returns are calculated using closing values of indices between first and last trading day. 10-year return is compounded average return.

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.