Since 2008, while large caps have not lost much value, midcap indices are down 40-50%. The following 2 charts give some perspective on this. The gap between FII ownership of large caps and midcaps has widened in recent years, from around 2% 2008 to around 9% now. With good reason – midcaps (on an average) are in a debt trap as the other chart shows. Several debt free midcaps, smallcaps and microcaps do exist.
Fairval 