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