METATrading Academy

Share market basics

Mid capbeech ke size ki companies

Companies ranked 101 to 250 by market capitalisation in AMFI's list; larger than small caps, more volatile than large caps.

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.

Lessons that use this term

Video
Basics7 min read

Investing vs trading: the two halves of the share market

The share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.