Large-cap, mid-cap, small-cap: what's the difference?

SEBI classifies listed companies by market capitalisation, and equity funds are named after where they invest:

• Large-cap — the top 100 companies. Stable, lower growth, lower risk. The "core" of most portfolios.
• Mid-cap — companies ranked 101–250. Faster growth potential, more volatile.
• Small-cap — ranked 251 onwards. Highest growth potential and highest risk; can swing wildly.

How to think about it

Large-caps cushion the falls; small-caps drive the gains in bull runs but hurt most in crashes. Flexi-cap and multi-cap funds spread across all three, letting the manager (or rules) decide the mix — a sensible default for most investors.

Match it to your horizon

Small and mid-caps need a longer runway (7+ years) to ride out volatility. If you might need the money in 3–4 years, lean large-cap or hybrid.

→ Filter by category in the MF Screener or see category leaders on the dashboard.