Did you know that the definition of a large-cap, mid-cap and small-cap in India changes every 6 months? This applies particularly for Indian Mutual Funds, so that as of now –

1. Large-cap companies are those ranked from 1-100 in order of market capitalisation
   • Per the recent review, the large-cap threshold is now ₹ 67,000 cr., up from ₹ 49,700 cr. in Jun’23.
2. Mid-cap companies are those ranked from 101 – 250 by market cap
   • The range for mid-caps is now ₹ 22,000 – 67,000 cr. The lower limit rose from ₹ 17,400 cr. earlier
3. And small-caps are all firms with a market cap below 22,000 cr.

This is quite relevant for Mutual Funds, where many define their strategy as Large Caps or Small caps. This definition, and periodic reviews, ensures that MFs stick to their strategy.
For direct investors too, we can loosely follow this definition.

This also means that firms doing well by market cap may transition up from one group to another. Several firms may also transition down, given how sharply the limits have increased. This transition may mean that MFs may buy or exit from them, in order to retain their MF strategy.

JainMatrix Investments is a SEBI registered Research Analyst firm. We publish research recommendations grouped by 1) Large Cap, 2) Mid & Small Cap and 3) Satellite stocks, which is a mixed group. With these investors can invest directly in recommended equities for their Wealth building journey.

Source – Article – AMFI classification: Jio Financial makes it to largecap list, Tata Tech, IREDA midcaps https://www.moneycontrol.com/news/business/markets/amfi-classification-jio-financial-makes-it-to-largecap-list-tata-tech-ireda-midcaps-11996161.html

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