Small Cap vs Mid Cap vs Large Cap Funds: Full Comparison
SEBI's October 2017 categorisation circular defines large caps as the top 100 companies by full market cap, mid caps as ranks 101–250, and small caps as rank 251 and below — a structural boundary that determines volatility, liquidity, and long-run return dispersion across these three equity categories. This analysis quantifies the TER drag difference, models Rs corpus outcomes over 20 years, and maps the structural fit criteria for each market-cap segment. Investors often hold all three without recognising that the overlap-adjusted diversification benefit diminishes beyond a two-category allocation.