SEBI defines the labels. The top 100 companies by market value are large caps. The next 150 are mid caps. Everything below is small cap. The list is refreshed every six months.
Large caps are established, widely researched and slow-moving; they fall less and rise less. Small caps are younger, thinly researched and volatile; they have produced the highest long-run returns and the deepest crashes. Mid caps sit in between.
A sensible portfolio holds mostly large and mid caps for stability, with small caps sized to what you can watch fall by half without selling. The right mix depends on your horizon and your temperament, which is what Crowwd's Investor DNA measures.
Buzz Bite
Size your small caps by what you can watch halve without flinching.
In this Flight
- Equity Funds
- Debt Funds
- Hybrid Funds
- Index Funds
- ELSS (Tax Saver) Funds
- Liquid Funds
- International & Thematic Funds
- Large Cap, Mid Cap & Small Cap