Basics · Beginner
Cap category: what it means and how to read it
Size buckets. Under SEBI's rules the 100 biggest listed companies are large caps, the next 150 are mid caps and the rest are small caps. Micro caps are the very smallest.
What is Cap category?
Size buckets. Under SEBI's rules the 100 biggest listed companies are large caps, the next 150 are mid caps and the rest are small caps. Micro caps are the very smallest.
A worked example
The 100th biggest company is a large cap and the 101st is a mid cap. Rank 251 onwards is small cap. A fund that says 'large cap' must hold mostly the top 100.
Why does Cap category matter?
Size changes the ride: large caps are usually steadier, small and micro caps more volatile.
How do you read Cap category?
Pick the bucket that matches how much ups and downs you can live with.
A fact about the company, not a score.
The values it takes
Large CapMid CapSmall CapMicro Cap