AMFI Reclassifies the Stock List Based on Market Cap. 9 Stocks Move From Small-Cap to Mid-Cap. Check Them Out

The updated list of companies, based on market capitalisation is out. 9 small-cap stocks have upgraded to the mid-cap list. Check out the latest changes.

Smallcap stocks got upgraded
  • AMFI regularly reclassifies the list of companies based on market capitalisation.
  • The companies are divided into three categories – large-cap, mid-cap and small-cap.
  • In the recent reclassification, 9 small-cap stocks have moved to the mid-cap list.
  • Check out these 9 stocks and assess their potential.

What we know today as large-cap, mid-cap and small-cap stocks are, actually, classified by the Association of Mutual Funds of India (AMFI). AMFI is a body that oversees the work of the mutual fund industry and ensures that they follow the rules specified by the Securities and Exchange Board of India (SEBI).

AMFI also classifies companies based on their market capitalisation. The stocks are classified as follows –

  • Large-cap stocks – the first 100 stocks in AMFI’s list having the highest market capitalisation
  • Mid-cap stocks – stocks numbered between 101 and 250 on the list
  • Small-cap stocks – stocks which are numbered 251 and above

Based on this classification, mutual funds allocate their portfolios. For instance, large-cap funds invest in large-cap stocks which are classified by AMFI.

Also Read – Multi-cap and flexi-cap funds are different. Find out how

What has Changed?

Recently, AMFI rejigged the list of stocks based on their market capitalisation. This rejigging has moved 9 small-cap stocks to the mid-cap level since their market capitalisation has increased.

These 9 stocks hold a lot of potential and are growing fast. Mutual fund companies are expected to rejig their portfolios as well to buy or redeem these stocks to match their fund’s investment objective. However, this might take time. Here’s a look at existing mutual fund portfolios which have these 9 upgraded stocks as of 31st May 2023 –

9 upgraded stocks as of 31st May 2023

Click here for the latest articles on Stocks 

The Bottom Line

While mutual funds might take time to include these upgraded stocks in their portfolio, you can capitalise on their growth by directly investing in them. Assess the fundamental and technical performance of these stocks over the past and then invest in them if they align with your investment strategy.

Also Read – Do you know about passive ELSS funds? Check them out.


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