Mutual Funds are classified as large cap, mid cap or small cap based on the size of companies they invest in. This size is defined according to market capitalisation and a list of companies by market cap is maintained by the Association of Mutual Funds of India (AMFI). AMFI is required to update this list every six months. AMFI has updated its previous list and released the new list.
Before, we look at the list, here is some background:
According to the SEBI classification system
- Large-cap equity funds must invest at least 80% of their assets in the top 100 companies by market capitalisation
- Mid-cap equity funds must invest at least 65% of their assets in the 101st to 250th largest company by market capitalisation
- Small Cap equity funds must invest at least 65% of their assets in companies below the top 250 by market capitalisation
The AMFI List
The full list has contracted to 5077 companies, down from the 5,248 companies available earlier. TCS has replaced Reliance as the largest listed company. It has a market cap of about Rs 6.10 lakh crore. Reliance is second with a market cap of Rs 5.96 lakh crore. It is followed by HDFC Bank, ITC and HUL.
The combined market cap of the companies on the list has grown from Rs 140.70 lakh crore to Rs 146 lakh crore, a 4% growth over the past 6 months. The 100th largest company is Colgate-Palmolive (India). Vakrangee which was earlier the 100th largest has dropped to the 137th position following a steep drop in its stock price.
The market cap of the 100th largest company, Colgate is Rs 30,621 crore. In other words, a company must have a market cap higher than approximately Rs 30,000 crore to be in the top 100 companies in India.
The next 150 companies fall in the mid cap list. This list begins with United Breweries and ends with Eastern India Hotels (EIH) with a market cap of Rs 9,985 crore. This is a significant hike from the previous mid cap listing ending in Manappuram Finance at Rs 8,584 crore (which is now classified as small cap). Mid caps, as a category have gotten a lot bigger and perhaps a lot more expensive.
The top 250 companies are followed by an immense small cap universe of 4,827 companies. Small cap funds can invest in them. Apart from these, multi cap funds, value funds and various other categories can also go into the small cap universe.
You can find the full list here.