What is the difference between large-cap, mid-cap and small-cap equity?
| Characteristics | Large-Cap | Mid-Cap | Small-Cap |
|---|---|---|---|
| Market Capitalisation | * Top 100 ranked companies in terms of market cap * Market cap of Rs. 20,000 crore or more | * Companies ranked from 101-250 in terms of market cap * Market cap of Rs. 5,000 crore to Rs. 20,000 crore | * Companies ranked below 250 in terms of market cap * Market cap below Rs. 5,000 crore |
| Growth Potential | * High potential for stable returns * Lower than that of mid and small-cap stocks | * Moderate growth potential * Higher than large-cap stocks | * Highest growth potential |
| Liquidity | * Companies ranked below 250 in terms of market cap * Market cap below Rs. 5,000 crore | * Lower liquidity in comparison to large-cap stocks as the demand, for these stocks are slightly lower | * Least liquidity * Can make squaring-off/ closing positions difficult |
| Volatility | * Stable and less volatile | * Slightly volatile | * Highly volatile-prices can swing considerably |
| Risk & Ideal Investor Profile | * Relatively low risk * Suitable for conservative investors with a long-term investment horizon | * Slightly riskier than large-cap stocks * Suitable for investors with a moderate risk appetite with a long-term investment horizon | * Considerable riskier than large and mid-cap stocks * Suitable for aggressive investors with short-term goals |
Still need help? Create Ticket
