Why in the news
Volatility in smaller stocks pushed money away from small and mid-cap funds.
SEBI classification (2017)
| Category | Range | Rank |
|---|
| Large-cap | ₹20,000 crore and above | 1-100 |
| Mid-cap | ₹5,000-20,000 crore | 101-250 |
| Small-cap | Below ₹5,000 crore | 251 onwards |
Company traits
- Large-cap: blue-chip, stable, often in Nifty 50.
- Mid-cap: moderate risk, growth-oriented.
- Small-cap: limited record, high growth potential, often startups, thinly traded.
Fund comparison
| Parameter | Large-cap | Mid-cap | Small-cap |
|---|
| Risk | Low | Moderate | High |
| Volatility, liquidity | Low, high | Moderate | High, low |
| Average returns | About 7% (5 years) | About 10.28% | About 14.74% |
Exam angle
- Large-cap floor: ₹20,000 crore.
- Mid-cap ranks: 101-250.