Midcap Prime is built for stability in cyclical and capital-intensive sectors. Using ~10 rules from MAGIC 2.0, it selects mid-sized businesses with sustained PAT and CFO growth above 20%, strong CFO/PBIT, and improvements in ROCE/ROE. It balances attractive returns with prudent risk controls, making it a dependable midcap allocation.

Size & Sectors: Avg. mcap ~₹30,000-40,000 crore; diversified old-economy industries

Selected Rule Highlights

1. PAT & CFO growth >20% across cycles.
2. Focus on high CFO/PBIT levels.
3. Emphasis on ROCE and ROE improvement.

Back-tested Performance Snapshot (2Yr CAGR)

1. Mean: Prime ~31% | Nifty50 ~15%
2. Median: Prime ~31% | Nifty50 ~13%
3. Downside Risk (MAR <15%): 0.11 vs 0.10 for Nifty
4. Sortino Ratio: 2.9 vs 1.5 for Nifty
5. Probability of >15% returns: 68% vs 43%

Business Quality Highlights

1. Capital Efficiency: ROCE and ROE ~20+
2. Growth: PAT 12–15%, Revenue 10–15% (1–2 yr)

Valuation: P/E ~15–20x; 53% profit vs 47% PE re-rating contribution