What counts as mid cap
Companies ranked 101st to 250th by full market value (AMFI's six-monthly list). A mid cap fund must keep at least 65% in them; the rest can go to large or small caps.
Where they sit
| Large cap | Mid cap | Small cap | |
|---|---|---|---|
| Company size | Top 100 | 101–250 | 251 and below |
| Growth potential | Lower | Higher | Highest |
| Ups and downs | Smaller | Larger | Largest |
| Suggested horizon | 5+ years | 7+ years | 7–10+ years |
Mid caps include many businesses that may become tomorrow's large caps — and some that won't. Their falls in bad markets are usually deeper than large caps'.
Mid cap or large & mid cap?
A large & mid cap fund keeps at least 35% each in large and mid caps, giving some of the mid cap growth with a large cap cushion — a gentler option for many investors.
Using them well
- Treat them as a satellite to a core of large cap, index or flexi cap funds.
- Invest by SIP and stay through bad years.
- Check the fund's liquidity stress test (published monthly since 2024) and its spread across sectors.
- Review once a year against the mid cap index, not against last month's top performer.
Tax
As for all equity funds: 20% within 12 months, 12.5% on gains above ₹1.25 lakh a year after.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
For general information only, not investment advice or a recommendation. Oxon Fintech is a loan facilitation platform, not a SEBI-registered investment adviser, bank or mutual fund distributor, and does not sell bonds, deposits or funds. Rates and rules are as checked on the date above; confirm with the issuer, bank or fund house before investing. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.