Definition of Large Cap, Mid Cap, and Small Cap Companies in Mutual Funds

Large Cap Companies

Top 100 companies in terms of market capitalization.

Established, stable, and less volatile.

Examples: Reliance Industries, TCS, HDFC Bank.

Suitable for conservative investors seeking steady returns.

Mid Cap Companies

Companies ranked 101 to 250 in market capitalization.

Higher growth potential but moderately volatile.

Examples: PI Industries, Tata Power, AU Small Finance Bank.

Ideal for investors with a balanced risk appetite.

Small Cap Companies

Companies ranked 251 and beyond in market capitalization.

High growth potential but also highly volatile.

Examples: Deepak Nitrite, Tanla Platforms, Delta Corp.

Best for aggressive investors willing to take higher risks for potential high returns.

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