Midcaps vs largecaps: Where should you bet as market outlook turns foggy?

Historically, in times of declining economic growth, it is the largecaps that have outperformed. When GDP growth dropped between 2010-2012, Nifty50 rose nearly 13% whereas Nifty Midcap50 declined by 11.9%. Similarly, in rising inflation phases, such as between 2007 to 2010, the former gained 53% while the latter gained 30%.

Midcaps vs largecaps: Where should you bet as market outlook turns foggy?
Historically, in times of declining economic growth, it is the largecaps that have outperformed. When GDP growth dropped between 2010-2012, Nifty50 rose nearly 13% whereas Nifty Midcap50 declined by 11.9%. Similarly, in rising inflation phases, such as between 2007 to 2010, the former gained 53% while the latter gained 30%.