Card 2 | Microcap . The Cap-Curve Read

RupeeCase

Strategy . Microcap . 2 of 3

The cap-curve, line by line

Four cards. Same engine. The ladder is not what you think.

Equal-weighted. Two-week rebalance. The only thing that changes is the universe each card draws from. Five-year backtest, net of cost.

Strategy

5Y CAGRvs Nifty 10.44

Max DDvs Nifty -16.92

Sharpevs Nifty 0.78

Volatilityannualised

AllcapNifty Total Market . 50 stocks

48.02%

-22.70%

1.77

19.10%

MidcapNifty Midcap 150 . 20 stocks

41.21%

-24.87%

1.48

22.30%

SmallcapNifty Smallcap 250 . 50 stocks

41.03%

-22.35%

1.58

23.54%

MicrocapNifty Microcap 250 . 50 stocks

40.56%

-26.44%

1.53

24.15%

Microcap vs Smallcap . return

-0.47 pp

Step down one rung. Headline CAGR moved the wrong way by half a point.

Microcap vs Smallcap . drawdown

-4.09 pp

The deeper universe pays in pain, not in alpha. Same rebalance. Wider hole.

The honest read

The cap curve is not a return ladder. It is a drawdown ladder dressed up as a return ladder.