Advantage market capitalization

The stock markets are a shifting kaleidoscope of ups and downs and are often difficult to peg down. Having said that, equity markets offer investors myriad opportunities to preserve and grow their wealth which come in various shapes and sizes. However, in investing, size does matter. In equity market parlance the size of a company is synonymous with its market capitalisation. According to SEBI guidelines, the top 100 companies in terms of market capitalisation are categorised as large cap companies. The next 150 are categorised as midcap companies and the 251st company and below are categorised as small cap ones. It is important to be cognizant of this because investing in a company of a certain size brings with it unique opportunities and risks. The advantages and drawbacks of large-cap investments are different from that of small and midcap investments. Consequently, the value that...