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.

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. Moreover they re also usually cost effective for the investors. 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.

Small cap stocks. 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. In india examples of large cap companies include wipro tcs and infosys among others. Large cap is a shortened version of the term large market capitalization in india normally companies with.

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. Mid cap companies can be considered to border large cap and small cap companies on both. Furthermore as mentioned above there are other types of shares other than the small cap stocks as discussed below. 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 the name implies a mid cap company falls in the middle of the pack between large cap 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. In a nutshell mid cap stocks offer a best of both worlds. Categorization of large cap mid cap and small cap stocks.

As mentioned earlier these businesses have between 300 million and 2 billion of the total.