Rank, not rupees
Indian mutual funds do not decide for themselves what a "large cap" is. SEBI fixed it by rank in 2017, and AMFI keeps the list:
| Group | Rank by full market capitalisation |
|---|---|
| Large cap | 1st to 100th |
| Mid cap | 101st to 250th |
| Small cap | 251st onward |
So a company is not a large cap because it crosses some figure in crores. It is a large cap because 99 or fewer listed companies are bigger. The rupee value at rank 100 moves with the market; the rank cut-offs do not.
How the list is kept up to date
AMFI re-ranks companies every six months, using each company's average market value over the previous six months. Averaging stops a stock from changing group because of one big day. A stock that slips from rank 100 to 101 is a mid cap on the next list, and the funds that hold it are measured against the new classification.
What each fund type must hold
SEBI's category rules set minimums for each segment:
| Fund category | Minimum rule |
|---|---|
| Large cap | At least 80% in large caps |
| Mid cap | At least 65% in mid caps |
| Small cap | At least 65% in small caps |
| Large & mid cap | At least 35% each in large and mid caps |
| Multi cap | At least 25% each in large, mid and small caps |
| Flexi cap | At least 65% in equity, any mix of sizes |
These are floors. Within them a manager chooses. That is why two funds in one category can look different: a large-cap fund may keep 15% in mid caps, within the rules.
Why the labels matter to you
- Risk differs by segment. Smaller companies tend to swing more, which is why our small-cap fund concentration post looks at how a few holdings dominate. Read the riskometer before picking.
- Comparing funds is fair only within a category. A mid-cap fund and a large-cap fund are not competing on the same terms. The screener filters by category for this reason.
- Holdings can drift. Because the list is re-ranked, a fund can end up with stocks that changed group since it bought them.
This post is educational, not financial advice. Classification rules and the AMFI list are updated by the regulator; check the latest circular and list for current figures.
Frequently asked questions
Is a large cap defined by a rupee market value?
No. It is defined by rank. The 100 companies with the highest full market capitalisation are large caps, whatever that value is on the day.
How often does the list change?
AMFI publishes the classification twice a year, using average market value over the preceding six months. A company can move between groups when a new list comes out.
Does a large-cap fund hold only large caps?
No. SEBI's rule is a minimum: a large-cap fund must keep at least 80% of its assets in large-cap stocks. The rest can sit in other stocks or cash.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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