Midcaps are where a lot of India’s real growth shows up — earnings upgrades, new capex, sector catch-ups — but they’re also where investors feel the tape the most. Pure midcap momentum is fun in trending months and uncomfortable in every other month. Balanced Edge was built for that exact gap: keep the “I want to own what’s moving in midcaps” part, but put some brakes on how violently the portfolio reacts.

What we’re optimizing for
This portfolio works inside the Nifty Midcap 150, but it does not take every fast mover. It is deliberately trying to capture the ongoing strength in midcaps — names that are participating week after week — while skipping the names that only look good because of one noisy day. That’s the “edge”: momentum, but from the steadier side of the belt.

Clean Universe First
Each month we start from the midcap 150 and remove names that, for that month, don’t clear liquidity, corporate-action or basic investability checks. If a stock is messy to trade, we don’t try to force it in. A smoother experience starts with a cleaner universe.

Signals with a Filter
On the usable set we run short-to-intermediate momentum inside midcaps — we’re only comparing midcaps to midcaps. Then we apply two brakes:

1. ̥Volatility reasonableness — skip the whippy names that will make the portfolio feel like small-caps,
2. Crowding/tradability — prefer better-traded names so sizing and exits stay practical.

Only stocks that are strong and usable get in.

Portfolio Shape and Controls
Balanced Edge usually holds 14–18 stocks. Higher-scoring names can be a bit larger, but stock and sector caps stop one theme (say, capital goods or PSUs) from hijacking the whole month. Exits are rule-led: if participation fades, if liquidity weakens, or if an event changes how it can be held, the stock goes out. No “let’s keep it, it used to work.”

Monthly, not hyperactive
The portfolio is refreshed once a month to bring in fresher midcap movers and retire slowed names. In between, we touch it only if a stock clearly stops meeting the rules. That’s how we stay current without creating the “trade every week” feeling of raw momentum.

How it will feel

• When midcaps trend, this sleeve should track that move closely.
• When the market rotates to large-caps or gets nervy, this sleeve should look quieter than aggressive midcap/small-cap books because it’s already sitting in the better-traded names and has caps on concentration.
• It is still midcap, so volatility won’t disappear — but it should stay inside a more usable band.

Balanced Edge is for investors who like midcap momentum but don’t want to live through every spike — a rules-based way to stay in what’s working, with in-built brakes.