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Market capitalisation
The total market value of a company, used to sort companies into large, mid and small cap.
Example. The 100 largest listed companies are large-cap; from the 251st onward is small-cap.
Market capitalisation is the share price multiplied by the number of shares. In India, companies are ranked by it: the largest 100 are large-cap, the next 150 are mid-cap, and everything from the 251st onwards is small-cap. The pattern as you move down is consistent. More room to grow, and more volatility and business risk along the way. Fund categories are defined by these bands, so the label on a fund tells you roughly how bumpy the ride is likely to be.
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