What Are Small Mid And Large Cap Stocks In India

Large cap sometimes big cap refers to a company with a market capitalization value of more than 10 billion.

What are small mid and large cap stocks in india.

In this post we are going to discuss the basics of market capitalization a k a market cap in the indian stock market to understand large cap mid cap and small cap companies in india. Mid cap companies can be considered to border large cap and small cap companies on both. Small cap stocks. In a nutshell mid cap stocks offer a best of both worlds.

Further sebi has also stipulated that amfi shall prepare the list of stocks in this regard in accordance with the points specified. Categorization of large cap mid cap and small cap stocks. Based on the market cap companies are classified as large cap companies mid cap companies and small cap companies. Small cap stocks have fewer publicly traded shares than mid or large cap companies.

In order to ensure that equity schemes follow uniform norms for defining large mid and small caps the securities and exchanges board of india sebi has defined them as follows. Moreover they re also usually cost effective for the investors. Mid cap stocks are situated in the ideal sweet spot asthey offer investors with greater growth potential than large cap stocks but also offer less volatility and risks than small cap stocks. As mentioned earlier these businesses have between 300 million and 2 billion of the total.

High growth but less volatility. Furthermore as mentioned above there are other types of shares other than the small cap stocks as discussed below. Defined large cap mid cap and small cap companies in order to ensure uniformity in respect of the investment universe for equity mutual fund schemes. In india examples of large cap companies include wipro tcs and infosys among others.

As the name implies a mid cap company falls in the middle of the pack between large cap and small cap companies.