AMFI has updated the list of stocks based on their market cap for mutual funds. Fund houses are expected to follow this list in letter and spirit to comply with the new norms on scheme categorization.
Earlier, SEBI had instructed AMFI to rank stocks based on their market capitalization for the mutual funds, as fund houses used to follow their in-house definition on market capitalization.
AMFI defines large cap stocks as the top 100 companies in terms of full market capitalization. While mid cap stocks comprise companies ranked from 101 to 250, beyond 250 rank are small cap stocks.
Releasing the revised list recently, AMFI said, “SEBI has defined large cap, mid cap and small cap companies in order to ensure uniformity in respect of the investment universe for equity mutual fund schemes. Further, SEBI has also stipulated that AMFI shall prepare the list of stocks in this regard. Accordingly, AMFI, in consultation with SEBI and Stock Exchanges, has prepared the list of stocks, based on the data provided by Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSEI).”
Market capitalization is the value of a company on the stock market derived from multiplication of the total number of shares by the current share price.
Click here to read the complete list.
