Unveiling the dynamics of large- and mid-cap category

IN THE VAST and everevolving realm of investment opportunities, investors are often presented with a spectrum of choices.

- Deepesh Mehta

Among these, the large- and mid-cap category stands out as a nuanced and strategic option, offering a blend of stability and growth.

Large-cap:

The pillar of stability Large-cap, short for large capitalisation, are companies that form the top 100 companies in the average market capitalisation. The list for the same is published on the AMFI website every six months. Market capitalisation is calculated by multiplying the company’s current stock price by the total number of outstanding shares. These companies are often industry leaders, characterised by their stability, established market presence and significant market share.

Investing in large-cap stocks provides a degree of stability that appeals to risk-averse investors. These companies are generally well-established, with a proven track record of weathering economic downturns. They often also have a global presence, diversified revenue streams and the financial strength to withstand market fluctuations.