Mid-cap stocks are companies ranked 101st to 250th by market capitalisation in the list AMFI publishes every six months. They sit between the giants of Nifty 50 and the many small caps below. Mid caps are often companies that have proven their business and are still growing, which is why they attract investors hoping for higher growth than large caps offer. The other side is more volatility, thinner liquidity and sharper falls in bad markets; mid-cap indices have dropped far more than Nifty in past corrections. The Nifty Midcap 150 index tracks this segment, and mid-cap mutual funds must invest mainly in it. Because the classification is by rank, a stock can graduate to large cap or slip to small cap at each review. Check a company's current category rather than relying on an old label.