Market Capitalisation
The total market value of a company's shares, calculated as the share price multiplied by the total number of shares.
Market capitalisation — or 'market cap' — is the standard measure of a company's size. In India, SEBI uses it to classify funds: the top 100 companies are large-cap, 101–250 are mid-cap, and 251 onwards are small-cap.
Size strongly influences risk and return: larger companies tend to be steadier but slower-growing, while smaller ones offer higher growth potential and greater volatility.
Key points
- Share price × number of shares.
- Defines large-, mid-, and small-cap categories.
- Smaller size generally means higher risk and potential.
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Related terms
Shares of a large, well-established, financially sound company with a long track record.
VolatilityHow much an investment's value swings up and down over time.
Net Asset Value (NAV)The per-unit value of a mutual fund, calculated as the total value of its holdings minus expenses, divided by the number of units outstanding.
Expense RatioThe annual fee a mutual fund charges to manage your money, expressed as a percentage of your investment.