What is Mid Cap Stocks?
Mid-cap stocks are shares of stock that come from companies with a market capitalization size between INR 5,000 crore to INR 20,000 crore. These stocks tend to be less volatile than their large-cap counterparts due to the reduced market liquidity, making them attractive to investors with moderate risk tolerance.
Why invest in Mid-cap?
Investing in mid-cap companies has a number of benefits. Mid-caps come with less risk and volatility than large cap stocks. This means that investors will have peace of mind knowing that their money and efforts won't go to waste as quickly as with larger investments. Midcaps are also more adaptable to sudden market changes since they aren't so big that drastic changes need to be made; instead, small shifts can be enough to maintain the company's financial stability when compared to its peers.
How to identify mid-cap stocks?
Market cap can help define whether the stock rolls up into a small-cap, mid-cap, or large-cap category. Companies with market capitalizations between INR 5,000 crore to INR 20,000 crore are considered Mid-Cap stocks, and they often offer investors potential upside while carrying less risk than their small-cap counterparts.