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What is Giant Cap and Tiny Cap?

At Value Research we use a definition that we have evolved - the one we believe best represents the way the Indian stock markets function

I have been an avid reader and subscriber of VR. I have been buying stocks and adding them to My Portfolio in Value Research I see the segregation as Giant Cap and Tiny Cap. What is the market capitalization with which you are segregating the stocks?
- Mahesh Kumar

The allocations to the three capitalisation groups as provided by Value Research is different from what is stated in fund fact sheets. At Value Research we use a definition that we have evolved - the one we believe best represents the way the Indian stock markets function. We classify large-caps as the smallest number of stocks that can together equal 70 per cent of the total market capitalisation of the BSE. These are further classified as Giant cap (50 per cent) and Large cap (20 percent). Mid-caps are the smallest number of stocks that can equal the next 20 per cent of market capitalisation and small-caps are the remaining companies, whose market capitalisation will add up to almost 10 per cent of the total value. You can assess your portfolio based on this explanation.

This article was originally published on June 14, 2016.

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