InvestmentFinancial Glossary
Mid Cap
Definition
Companies ranked 101st to 250th by market capitalization on Indian stock exchanges, as classified by SEBI. Mid-cap companies are established businesses that are still in a growth phase, offering higher return potential than large-caps but with greater volatility.
Why It Matters
Mid-cap funds have historically outperformed large-cap funds by 2-4% annually over 10+ year periods in India. However, mid-caps can fall 40-50% during bear markets compared to 25-35% for large-caps. They are suitable for investors with a 7+ year horizon who can tolerate short-term volatility.