Largecap
Market basicsUnder SEBI’s definition, the 100 largest listed Indian companies by market capitalisation.
In plain terms
Established, liquid, well covered. Falls least in a crash.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Fund categories
Market basicsThe scheme categories SEBI mandates, each specifying what a fund must hold — largecap, midcap, smallcap, flexicap, multicap, ELSS, hybrid and index among them.
In plain terms
The label is a legal constraint on holdings, not marketing, which is what makes thousands of schemes comparable. It also fixes the only valid comparison: same category, against the fund's own declared benchmark.
Multicap
Market basicsA SEBI fund category required to hold at least 25% each in largecap, midcap and smallcap stocks.
In plain terms
Forced diversification across sizes. The manager is legally unable to retreat into largecaps during a smallcap crash — which is the whole difference from a flexicap.
Flexicap
Market basicsA fund category required to hold at least 65% in equity with no constraint on market cap, leaving the mix to the manager's discretion.
In plain terms
The one people confuse with multicap. A flexicap manager can sit 90% in largecaps when nervous, so in a smallcap crash two funds with almost identical names behave nothing alike.
Midcap
Market basicsCompanies ranked 101 to 250 by market capitalisation under SEBI’s classification.
In plain terms
Proven businesses still scaling. Meaningfully more volatile than largecaps.