New Delhi, Sept. 18 -- Midcap stocks are often associated with higher growth potential, but they also come with sharper bouts of volatility. The Nifty Midcap 150 has experienced multiple periods of steep declines over the past two decades, including five instances when the index fell more than 20%.

For investors, however, the risk is not limited to seeing their portfolio fall during a correction. Trying to avoid every sharp decline can create another risk: missing the recovery.

A study by Abakkus Mutual Fund, which analysed the Nifty Midcap 150 between April 2005 and August 2026, illustrates how quickly the cost of missing strong market days can compound over the long term.

The data shows that corrections are not unusual for the Nifty ...