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.
What are small mid and large cap stocks in india.
Based on the market cap companies are classified as large cap companies mid cap companies and small cap companies.
Further sebi has also stipulated that amfi shall prepare the list of stocks in this regard in accordance with the points specified.
Mid cap stocks are stocks of mid sized companies that have a market cap in the range of 2000 crore to 10000 crores mid cap companies can be considered to be on the border of large cap and small cap companies on both ends of the market capitalization spectrum.
Categorization of large cap mid cap and small cap stocks.
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.
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.
As the name implies a mid cap company falls in the middle of the pack between large cap and small cap companies.
As mentioned earlier these businesses have between 300 million and 2 billion of the total.
Large cap sometimes big cap refers to a company with a market capitalization value of more than 10 billion.
Mid cap companies can be considered to border large cap and small cap companies on both.
A complete guide on market capitalization of indian stocks to understand large mid and small 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.
Small cap stocks have fewer publicly traded shares than mid or large cap companies.
Small cap stocks.
High growth but less volatility.
Furthermore as mentioned above there are other types of shares other than the small cap stocks as discussed below.
In india examples of large cap companies include wipro tcs and infosys among others.