The number that sells and the number that tests.
Focused Midcap. 20 stocks, Nifty Midcap 150, two week rebalance. Five year backtest against the Nifty 50.
| The two sides of the same card | Midcap | Nifty 50 |
|---|
| CAGR . the headline | 41.21 pct | 10.44 pct |
| Deepest fall | 24.87 pct | 16.92 pct |
| Annual swing . volatility | 25.44 pct | 14.04 pct |
| Return per unit of risk . Sharpe | 1.48 | 0.78 |
| The one stretch that tested holders | |
|---|
| Bought at the peak | 20 Dec 2024 |
| Down in the first two months, Jan and Feb 2025 | 23.78 pct |
| Days below that peak | 322 |
| Climb from the low back to par | plus 33.1 pct |
| Where 2025 still finished | plus 5.7 pct |
Same card, same rule the whole way. The 41.21 a year is what the people who sat those 322 days kept. Not a number you spot on a Saturday. A hole you stay inside until it fills.