Indian midcaps are where growth starts looking serious but still has room to be re-rated — big enough to be liquid, small enough for earnings upgrades to actually move the price. Over the last few years they’ve also become the part of the market where flows swing the most: one month money is chasing manufacturing, capital goods and financials in the Nifty Midcap 150, the next month it cools and everything looks noisy. Rising Stars is meant for exactly that layer — a rules-led way to stay with midcaps that are in the middle of an upswing right now, without having to guess the theme every month.

What Rising Stars Tries to Capture
Rising Stars sits inside the Nifty Midcap 150 and keeps only those names that look to be in an ongoing upgrade phase — stocks that have been participating steadily better than other midcaps, have liquidity behind the move, and still have room before they look fully discovered. It’s not a sector call, it’s a “who is working in midcaps right now” call.

Universe and Filters
We start each month from the current Nifty Midcap 150 list — companies ranked 101–250 from the Nifty 500, spread across financials (~26%), capital goods (~14%), healthcare, autos and consumer names. Then we drop names that month that don’t clear investability or corporate-action checks. The point is to keep the portfolio executable even in busy midcap phases.

How Selection Works
On this filtered universe we run a short-to-intermediate momentum / behavior score inside midcaps — we want consistent upside participation, not one-day spikes. We then layer in liquidity/flow quality so the basket doesn’t fill up with names that are strong on price but weak on trading. Stocks that clear both make it in; stocks whose score or liquidity cools get replaced.

Portfolio Shape
Rising Stars typically holds 14–20 stocks. Better-scoring names can be a bit larger, but we cap stock and sector exposure so one hot midcap theme (say, capital goods or PSUs) doesn’t run the entire month. That keeps risk spread across multiple “mid-tier growth” lines.

Rebalancing Rhythm
Because midcap flows can turn quickly — record inflows in July–August 2025, sharp moderation in March/April — we review monthly. Each review pulls in fresher movers and exits names that stalled, lost trading strength, or became messy after an event. Mid-month changes happen only on clear rule breaches, so turnover stays predictable.

What to Expect
When midcaps as a group are being chased — like August 2025, when they outdrew large-caps — this sleeve should look very current. When the market rotates to large-caps or defensives, Rising Stars can look flatter or see more changes. That’s normal for a momentum-in-midcaps portfolio.

Who it Suits
Investors who want something faster than large-caps but cleaner than small/micro, who are okay with monthly rotation, and who understand that midcaps can have phases of underperformance even when the long-term India story is intact. Not for investors seeking index-like smoothness.

Rising Stars keeps you in the midcaps the market is actually rewarding this month — from a liquid, rules-checked universe — and steps away when that leadership cools.