If you have been wondering whether mid-cap and small-cap funds are one and the same thing, you should definitely refer to SEBI’s product categorization circular issued in Oct 2017 that came into effect in June 2018. These are two different types of equity mutual funds that invest in different kinds of companies, as defined by their market sizes, and hence exhibit different risk-return profiles.
There are many publicly listed companies on various exchanges in India. Mid-cap refers to the 101st to 250th company in terms of market capitalization (market capitalization = no. of publicly listed shares * price of each share) while 251st company onwards in terms of market capitalization are called small caps.
A Mid-cap fund invests in mid-cap companies that have high growth potential but
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