The baskets of stocks in which equity mutual funds invest are of various sizes based on their market capitalisation. Earlier this distinction created four kinds of equity schemes based on market caps large cap, mid cap, small cap and multi cap. This is not to say that a large cap funds invested solely in large companies. A large cap fund had a clear predominance of large cap stocks with some percentage invested in mid or maybe even small caps.
Things have slightly changed after the Securities and Exchange Board of India (SEBI) came out with its new categorisation regulations in 2017. Now, there is a category the large and mid cap category. Lets take a deeper look into what SEBI has done.
What are large and mid cap funds?
SEBI has now laid down clear definitions of all market capitalisations – companies that are in the top 100 listed stocks by market capitalisation will be large caps; companies that are between 100-251st will be mid caps; and small caps would be the companies that fall below 251 in the market cap list. SEBI would also update the list of companies in the three categories every six months and mutual fund houses would have to make changes to their portfolios accordingly.
Bu hikaye Investors India dergisinin October 2018 sayısından alınmıştır.
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Bu hikaye Investors India dergisinin October 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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