Nifty MidSmall Financial Services Index

The Nifty MidSmall Financial Services index tracks up to 30 mid and small cap companies operating in the financial services sector. It covers banks and NBFCs to insurance firms, exchanges, and fintech businesses.

While the broader Nifty Financial Services index is dominated by large-cap banks and insurers, this one focuses specifically on the mid and small-cap segment of the financial services chain. All stocks are drawn from the Nifty MidSmallcap 400.

Since NSE Indices maintains the index, it serves as a reliable benchmark for fund managers to use for index funds, ETFs, and similar products focused on mid and small-cap financial services.

In short, tracking the Nifty MidSmall Financial Services live is like watching how India's emerging financial services companies, like banks, exchanges, insurers, and fintechs, are moving as a group.

Selection of stocks in the Nifty MidSmall Financial Services index follows a clear sector and size rule.

Here is how it works:

1. Parent universe

   : The stock must already be part of the Nifty MidSmallcap 400 at the time of review.

2. Sector filter

   : Only stocks classified under the financial services sector are eligible for inclusion.

3. Circuit filter

   : Non F&O stocks that have hit the upper or lower circuit on 20% or more of trading days in the past six months are excluded.

4. Size ranking

   : From the eligible names, up to 30 stocks are selected based on their six-month average free float market capitalisation.

5. Weighting input

   : Each chosen stock's share of the index is set by its free float market capitalisation.

6. Review & rebalancing

   : The index is reconstituted semiannually and rebalanced quarterly. The cut-off dates are January 31 and July 31 each year.

The index uses the Periodic Capped Free Float Market Capitalisation method to determine the weight of each stock in the index.

• Weight basis: Each stock's weight comes from its free-float market value \u2014 the shares actually available for public trading.
• Sector focus: The whole basket sits within financial services, so the index moves with how the sector's mid and small-cap names are doing.
• Live updates: The index value moves through the day as the stock prices move, that's what feeds the Nifty MidSmall Financial Services share price tickers.
• Two versions: Along with the regular price index, a Total Returns version is also published. The Total Returns version adds dividends back in.

Let us look at some benefits of investing in the Nifty MidSmall Financial Services stocks:

• Focused financial services exposure: The index zeroes in on mid and small cap financial services companies rather than the large cap-dominated broader financial index.
• Captures emerging financial businesses: Mid and small cap financials often represent the next generation of banks, insurers, and fintech platforms. This index offers exposure to companies that could grow into tomorrow's large caps.
• Expresses a sector and size view: For someone who believes in the long-term growth of India's emerging financial services economy, this index is a clean way to track that idea in one basket.
• Track the segment in real time: You can follow how India's mid and small-cap financial services companies are moving together through the trading day.
• Benchmark for sector products: The index is used as a reference for funds and ETFs built around the mid and small cap financial services theme.

With Anand Rathi's platform, investing in the Nifty MidSmall Financial Services or any of the NSE indices is simple.

Here's how to get started:

1. Step 1: Open / Login to Your Account

   
   Start by registering yourself and opening your demat account and trading account.

2. Step 2: Explore Investment Options

   
   Search for the relevant funds or ETFs that track the Nifty MidSmall Financial Services index.

3. Step 3: Choose Your Investment

   
   Pick a suitable option based on your understanding and risk appetite, and invest.

4. Step 4: Invest and Track

   
   Once invested, you can track the Nifty MidSmall Financial Services share price regularly — right from your dashboard.

5. Step 5: Stay Updated

   
   For more information, use research insights and tools to follow developments in this domain.

The Nifty MidSmall Financial Services index was launched by NSE Indices on August 3, 2022, to give investors a dedicated benchmark for the mid and small cap segment of India's financial services sector.

Before it existed, investors who wanted exposure to emerging financial services companies had to pick individual stocks or rely on the broader financial services index, which is dominated by large-cap names.

By creating a separate index for the mid and small cap financial services universe, NSE Indices made it possible to follow this segment as one connected story.

Over time, the index has been used as a benchmark for funds and products that want exposure to India's mid and small-cap financial-services companies.