Given the current higher valuations of mid-caps, it is difficult envisage a scenario where the returns will be in mid- and small-caps but not in large-caps." In times of market and economic weakness, mid-cap stocks underperform large-caps significantly. In 2008, 2011 and 2013, the Nifty Midcap 100 Index underperformed the Nifty by 7.6 per cent, 6.38 per cent, and 11.86 per cent respectively.”
