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ADDING MID-CAP MAGIC TO PORTFOLIO

The New Indian Express Kottayam

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June 29, 2026

OST SEBI's rationalisation and re-categorisation of funds some years ago, Mid-Cap Funds, as its title suggests are a category of equity funds that invest predominantly in mid-sized companies.

- ASHOK KUMAR

It needs to invest at least 65% of its corpus in Mid-Cap stocks. Investors back mid-cap funds in belief that the fund managers will identify and invest in Mid-Cap companies which have potential to grow into large cap companies.

As mentioned at the outset, this category was introduced as part of a re-categorisation of Equity Funds by the Securities and Exchange Board of India (SEBI) in October, 2017. SEBI defines a Mid-Cap company as those listed companies that are ranked from 101st to 250th at Indian stock exchanges in the terms of market capitalisation. Market capitalisation is calculated by multiplying the number of a company’s shares outstanding by its stock price per share.

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