What is market capitalisation in mutual funds?

Market capitalisation refers to the total market value of a company's outstanding shares, used to classify mutual funds into large-cap (top 100 companies), mid-cap (101-250), and small-cap (beyond 250) categories based on investment allocation.

How much market capitalisation is good?

Market capitalisation suitability varies by investor risk tolerance and goals. Large-cap offers stability with lower returns, mid-cap balances growth and risk, while small-cap provides highest potential returns with maximum volatility and risk. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

How can you invest in the best mutual fnds based on market capitalisation?

Here’s how you can start investing in the best mutual fnds based on market capitalisation: Launch the Tickertape Mutual Fund Screener. Select the best mutual fnds based on market capitalisation that matches your investment goals and risk appetite. Click on “Place Order” and choose the “SIP” option. Enter your preferred SIP amount and confirm “OK”. Your order will be placed.

How to identify the best mid-cap funds on Tickertape Mutual Fund Screener?

Here’s how to choose the best mid-cap funds - Assess your risk tolerance. Analyse the fund’s performance on Tickertape Mutual Fund Screener. Compare the expense ratio. Evaluate portfolio diversification across sectors, market caps, and asset classes. Understand tax implications as equity and debt funds are taxed differently. Check for exit load and lock-in period. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

What’s the difference between a flexi-cap fund and a multi-cap fund?

Flexi-cap funds have no restrictions on the allocation of funds to market capitalisation segments. In contrast, multi-cap funds must invest in companies across different capitalisations, such as large-cap, mid-cap, and small-cap stocks. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

Which mutual fund is best suited for short-term investment?

There is no one-size-fits-all answer, as the best mutual fund for short-term investment depends on individual goals and risk tolerance. Consulting with a financial advisor is recommended. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

What are the best performing mutual funds based on market capitalisation?

Here are the top mutual funds based on market capitalisation, sorted according to their 5Y CAGR: Quant Small Cap Fund Nippon India Small Cap Fund Motilal Oswal Midcap Fund Invesco India Smallcap Fund Bandhan Small Cap Fund Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

Top Mutual Funds Based on Market Capitalization - Best Funds, Benefits & Risks

Equity mutual funds in India held ₹23.6 tn in assets under management as of October 2024, with SEBI mandating distinct allocations across market cap segments: large-cap funds must invest at least 80% in the top 100 companies by market capitalisation, mid-cap funds in companies ranked 101-250, and small-cap funds in those beyond the top 250.

Top Mutual Funds Based on Market Capitalization in 2025

Mutual Funds Based On Market Capitalisation Screener

Here's the list of top mutual funds based on market capitalisation in India (2025).

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Showing 1 - 20 of 1722 results

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	NameMFs (1722)↓	↓Sub CategorySub Category↓	↓PlanPlan↓	↓AUMAUM↓	↓NAVNAV↓	↓Absolute Returns - 3MAbsolute Ret. - 3M↓	↓Absolute Returns - 1YAbsolute Ret. - 1Y↓	↓CAGR 3YCAGR 3Y↓	↓Expense RatioExpense Ratio↓	↓Exit LoadExit Load↓	↓VolatilityVolatility↓	↓% Largecap Holding% Largecap Holding↓	↓% Midcap Holding% Midcap Holding↓	↑% Smallcap Holding% Smallcap Holding↑
1.	Baroda BNP Paribas Arbitrage Fund Baroda BNP Paribas Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	1,279.43 1,279.43	17.42 17.42	1.58 1.58	6.94 6.94	7.77 7.77	0.31 0.31	0.25 0.25	0.88 0.88	-0.21 -0.21	-0.12 -0.12	-0.05 -0.05
2.	Bajaj Finserv Arbitrage Fund Bajaj Finserv Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	1,256.94 1,256.94	11.66 11.66	1.54 1.54	6.67 6.67	- -	0.31 0.31	0.25 0.25	0.82 0.82	-0.30 -0.30	-0.14 -0.14	-0.05 -0.05
3.	PGIM India Arbitrage Fund PGIM India Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	101.83 101.83	20.10 20.10	1.45 1.45	6.60 6.60	7.36 7.36	0.36 0.36	0.25 0.25	0.94 0.94	-0.35 -0.35	-0.04 -0.04	-0.04 -0.04
4.	Axis Arbitrage Fund Axis Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	7,873.09 7,873.09	20.84 20.84	1.57 1.57	7.00 7.00	7.72 7.72	0.33 0.33	0.25 0.25	0.78 0.78	-0.28 -0.28	-0.09 -0.09	-0.03 -0.03
5.	Quant Arbitrage Fund Quant Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	170.98 170.98	10.47 10.47	1.77 1.77	- -	- -	0.26 0.26	0.25 0.25	0.90 0.90	-0.25 -0.25	-0.08 -0.08	-0.02 -0.02
6.	Motilal Oswal Arbitrage Fund Motilal Oswal Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	1,664.56 1,664.56	10.70 10.70	1.64 1.64	- -	- -	0.11 0.11	0.25 0.25	0.80 0.80	-0.21 -0.21	-0.12 -0.12	-0.02 -0.02
7.	Invesco India Arbitrage Fund Invesco India Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	27,150.96 27,150.96	35.44 35.44	1.62 1.62	7.08 7.08	7.94 7.94	0.39 0.39	0.50 0.50	0.83 0.83	-0.25 -0.25	-0.10 -0.10	-0.02 -0.02
8.	Bank of India Arbitrage Fund Bank of India Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	43.16 43.16	14.75 14.75	1.46 1.46	6.38 6.38	7.05 7.05	0.37 0.37	0.50 0.50	0.90 0.90	-0.29 -0.29	-0.06 -0.06	-0.02 -0.02
9.	Mirae Asset Nifty 100 ESG Sector Leaders FoF Mirae Asset Nifty 100 ESG Sector Leaders FoF	FoFs (Domestic) - Equity Oriented FoFs (Domestic) - Equity Oriented	Growth Growth	98.34 98.34	19.55 19.55	3.85 3.85	6.57 6.57	12.22 12.22	0.07 0.07	0.05 0.05	12.73 12.73	- -	- -	- -
10.	SBI Floating Rate Debt Fund SBI Floating Rate Debt Fund	Floating Rate Fund Floating Rate Fund	Growth Growth	794.84 794.84	13.76 13.76	1.44 1.44	7.34 7.34	7.88 7.88	0.25 0.25	0.10 0.10	0.80 0.80	- -	- -	- -
11.	ITI Banking & PSU Debt Fund ITI Banking & PSU Debt Fund	Banking & PSU Fund Banking & PSU Fund	Growth Growth	36.44 36.44	13.72 13.72	1.62 1.62	7.73 7.73	7.62 7.62	0.15 0.15	- -	0.85 0.85	- -	- -	- -
12.	Mirae Asset Ultra Short Duration Fund Mirae Asset Ultra Short Duration Fund	Ultra Short Duration Fund Ultra Short Duration Fund	Growth Growth	1,787.75 1,787.75	1,359.65 1,359.65	1.60 1.60	7.53 7.53	7.59 7.59	0.17 0.17	- -	0.34 0.34	- -	- -	- -
13.	Mirae Asset Diversified Equity Allocator Passive FOF Mirae Asset Diversified Equity Allocator Passive FOF	FoFs (Domestic) - Equity Oriented FoFs (Domestic) - Equity Oriented	Growth Growth	941.13 941.13	25.83 25.83	4.39 4.39	4.67 4.67	14.70 14.70	0.05 0.05	0.05 0.05	12.96 12.96	- -	- -	- -
14.	Axis Global Equity Alpha FoF Axis Global Equity Alpha FoF	FoFs (Overseas) FoFs (Overseas)	Growth Growth	1,245.20 1,245.20	23.20 23.20	7.39 7.39	24.41 24.41	22.70 22.70	0.90 0.90	1.00 1.00	18.10 18.10	- -	- -	- -
15.	Mahindra Manulife Arbitrage Fund Mahindra Manulife Arbitrage Fund	Arbitrage Fund Arbitrage Fund	Growth Growth	84.67 84.67	13.16 13.16	1.50 1.50	6.12 6.12	6.64 6.64	0.22 0.22	0.25 0.25	0.87 0.87	-0.34 -0.34	-0.00 -0.00	- -
16.	BHARAT Bond FOF - April 2031 BHARAT Bond FOF - April 2031	FoFs (Domestic) - Debt Oriented FoFs (Domestic) - Debt Oriented	Growth Growth	4,721.85 4,721.85	13.96 13.96	2.46 2.46	8.92 8.92	8.18 8.18	0.08 0.08	0.10 0.10	2.59 2.59	- -	- -	- -
17.	Mirae Asset Banking and PSU Fund Mirae Asset Banking and PSU Fund	Banking & PSU Fund Banking & PSU Fund	Growth Growth	46.09 46.09	13.59 13.59	1.81 1.81	7.80 7.80	7.63 7.63	0.36 0.36	- -	1.22 1.22	- -	- -	- -
18.	SBI FMP-34-3682D SBI FMP-34-3682D	Fixed Maturity Plans Fixed Maturity Plans	Growth Growth	28.73 28.73	14.39 14.39	2.34 2.34	8.20 8.20	8.43 8.43	- -	- -	1.42 1.42	- -	- -	- -
19.	Motilal Oswal S&P 500 Index Fund Motilal Oswal S&P 500 Index Fund	Index Fund Index Fund	Growth Growth	4,091.74 4,091.74	28.46 28.46	8.86 8.86	20.88 20.88	23.51 23.51	0.61 0.61	1.00 1.00	19.35 19.35	- -	- -	- -
20.	HSBC Nifty Next 50 Index Fund HSBC Nifty Next 50 Index Fund	Index Fund Index Fund	Growth Growth	142.50 142.50	29.96 29.96	1.39 1.39	-4.56 -4.56	16.10 16.10	0.34 0.34	1.00 1.00	17.52 17.52	78.29 78.29	21.65 21.65	- -

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: Plan: Growth | AUM: Sorted from Highest to Lowest

What are the Best Mutual Funds Based on Market Cap?

Mutual funds based on market capitalisation are classified into five primary categories: large-cap funds that invest at least 80% in companies ranked 1-100 by market cap, mid-cap funds allocating at least 65% to companies ranked 101-250, small-cap funds investing at least 65% in companies beyond the 250th rank, multi-cap funds mandating minimum 25% allocation each to large, mid, and small-cap companies, and flexi-cap funds that allow fund managers complete flexibility to invest across any market capitalisation without fixed allocation limits.

Overview of the Top Mutual Funds Based on Market Capitalisation

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund is a flexi-cap fund offering allocation flexibility across market capitalisations with notable international equity exposure, managed by Parag Parikh Asset Management, featuring a concentrated portfolio approach and long-term investment philosophy focused on quality businesses with sustainable competitive advantages.

HDFC Mid Cap Fund

HDFC Mid Cap Fund is a mid-cap focused scheme from HDFC Asset Management allocating minimum 65% to companies ranked 101-250 by market capitalisation, featuring diversified sector exposure and active stock selection aimed at capturing growth opportunities in India's mid-sized companies segment.

ICICI Pru Large Cap Fundd

ICICI Pru Large Cap Fund is a large-cap fund from ICICI Prudential Asset Management investing at least 80% in top 100 companies by market capitalisation, offering exposure to established blue-chip stocks across sectors with focus on stability, consistent performance, and lower volatility characteristics.

Nippon India Small Cap Fund

Nippon India Small Cap Fund is a small-cap fundfrom Nippon India Asset Management allocating minimum 65% to companies ranked beyond 250 by market capitalisation, featuring high-conviction portfolio approach targeting emerging businesses with significant growth potential and higher volatility exposure.

Nippon India Multi Cap Fund

Nippon India Multi Cap Fund is a multi-cap scheme from Nippon India Asset Management mandating minimum 25% allocation each to large-cap, mid-cap, and small-cap companies, offering structured diversification across market capitalisations with active portfolio management balancing stability and growth across different company sizes.

How to Invest in the Best Mutual Funds Based on Market Capitalisation?

Here’s how you can identify and invest in top mutual funds based on market capitalisation with Tickertape Mutual Fund Screener -

Launch Tickertape Mutual Fund Screener.
Under the Category search for “”.
Sort out the best mutual fnds based on market capitalisation based on over 50 fundamental and technical filters.
After identifying the best mutual fnds based on market capitalisation that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in the best mutual fnds based on market capitalisation. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation on the Best Mutual Funds Based on Market Capitalisation

<p>The best mutual funds based on market capitalisation are equity-oriented because they mainly invest in small, mid, and large cap equities. So, they follow the same tax rules as equity mutual funds. You can take a look at the details below:</p>

Capital Gains Type	Holding Period	Tax Rate
Short-Term Capital Gains (STCG)	Less than 12 months	20%
Long-Term Capital Gains (LTCG)	More than 12 months	12.5%

Types of Mutual Funds Based on Market Capitalisation

Large-Cap Funds

Large-cap funds invest primarily in companies with the largest market capitalisation. In other words, these funds invest in companies ranked from 1 to 100 on the Indian stock exchange in terms of market cap. According to SEBI, large-cap funds must allocate at least 80% of the funds’ total assets to both – equity and equity-related instruments of large-cap companies.

Mid-Cap Funds

Mid-cap funds invest in companies’ equity with a market capitalisation of between Rs. 5,000 cr. to Rs. 20,000 cr. The mid-cap companies rank 101-250 regarding market capitalisation in an index. According to SEBI, mid-cap funds must allocate at least 65% of total fund assets to equity and equity-related instruments for mid-cap companies.

Small-Cao Funds

Small-cap funds invest in companies’ equity with a market capitalisation of under Rs. 5,000 cr. Small-cap companies start from 250th in the index in terms of market capitalisation. According to SEBI, small-cap funds must allocate at least 65% of total asset funds in small-cap companies.

Flexi-Cap Funds

Similar to multi-cap funds, flexi-cap funds can invest in companies of any market capitalisation size. However, with flexi-cap funds, the fund manager has the flexibility to avoid mid and small-cap stocks if they want entirely. In addition, it allows the fund manager the freedom to allocate a more significant portion of their portfolio to large-cap stocks when necessary, let’s say, in the event of an economic meltdown.

Multi-Cap Funds

Multi-cap funds offer the benefits of diversification of investment in equity shares of large-cap, mid-cap, and small-cap companies. As per the SEBI guidelines, multi-cap funds must invest at least 25% of their corpus in large-cap, mid-cap, and small-cap companies. The remaining 25% allocation depends on the discretion of the fund manager.

Benefits of Investing in Mutual Funds Based on Market Capitalization

Professional Management

Spreading money across different company sizes lets you grab opportunities across India's entire economy—big established players and smaller growing businesses. This spreads your risk instead of betting everything on one segment. Fund managers and their teams spend all day researching companies, picking stocks, and adjusting portfolios.

Inflation Hedging

Different segments give you different growth. Small and mid-cap funds usually deliver the biggest returns when markets go up. Large-cap funds grow steadily through the stable profits of market leaders. Over long periods, equity mutual funds typically beat inflation, which protects your money's purchasing power.

Investment Flexibility

SIPs let you invest small amounts regularly. This works great for jumpy mid and small-cap funds—you buy more units when prices drop and fewer when they rise, averaging out your cost. Current tax rules don't tax your first ₹1.25 lakh of long-term gains each year. Beyond that, you pay 12.5% on long-term gains and 20% on short-term gains.

Accessibility

You can mix different market cap funds based on your goals and comfort with risk at different life stages. Funds announce their value daily and let you sell when needed, so tracking what you own stays simple. SEBI watches these funds to ensure they follow rules, share information properly, and protect investors.

Risks of Investing in Mutual Funds Based on Market Capitalization

Market Volatility and Liquidity

When markets crash, different funds react differently. Small-cap funds can lose 40-50% of their value, while large-cap funds usually drop 25-30%—we saw exactly this during March 2020. Smaller company funds have another problem: liquidity. When everyone wants to sell, it gets harder to exit quickly, and this messes with the fund's daily price.

Fund Manager Dependency

Watch out for funds that bet too heavily on specific sectors or stocks. If those bets go wrong, your whole fund suffers. Small and mid-cap funds live or die by the manager's stock-picking skills. When a talented manager leaves, performance often changes dramatically. This makes manager stability crucial for these fund types.

Economic Sensitivity

When the economy slows down, small and mid-cap stocks hurt more. They don't have big cash reserves and often carry more debt than large companies do. SEBI and the government change rules from time to time—how funds operate, how gains get taxed. These changes can suddenly impact your returns in unexpected ways.

Capital Loss

You can lose money in any fund, but small-cap funds carry the biggest risk of permanent loss if companies go bankrupt or never bounce back. Mid and small-cap funds also swing wildly—they might crush the market one year and disappoint the next. Some funds concentrate too much in certain industries, so when that industry hits trouble, the whole fund takes a beating.

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Factors to Consider Before Investing in Mutual Funds Based on Market Capitalization

Risk Tolerance

Think about how much risk you're comfortable taking. Large-cap funds move slowly and steadily. Small-cap funds jump around a lot but could give you bigger returns. How long you plan to stay invested matters too—shorter periods generally work better with stable options, while longer periods can handle the wild swings that come with volatile segments.

Performance Metrics and Manager Track Record

Numbers like 3-year and 5-year CAGR tell you how funds have performed. Rolling returns show consistency across different market conditions. The fund manager's experience counts—check how long they've been running the fund and what results they've delivered. This becomes really important for mid and small-cap funds, where picking the right stocks makes or breaks your returns.

Expense Ratios

Every rupee you pay in fees is one less rupee in your pocket. Check what the fund charges you. See how the fund spreads money across sectors and companies. Some funds put too much in just a few stocks, which gets risky. Fund size also plays a role—huge funds sometimes struggle to find enough good options in mid and small-cap spaces.

Tax Implications

From 23rd July 2024, the government changed tax rules. You now pay 20% tax if you sell equity funds within 12 months. For holdings beyond 12 months, you pay 12.5% on gains above ₹1.25 lakh each year. Match your fund choice with what you're saving for—whether that's retirement, education, or building wealth. SEBI rules ensure these funds invest minimum amounts in their designated market cap segments.

Conclusion

Market capitalisation-based mutual funds offer distinct risk-return profiles across large-cap, mid-cap, small-cap, multi-cap, and flexi-cap categories, enabling investors to align their portfolios with specific financial goals and risk tolerance levels. The Tickertape Mutual Fund Screener allows investors to filter and compare funds using parameters like CAGR, AUM, expense ratios, and volatility, facilitating informed decision-making based on individual investment objectives and time horizons.

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Frequently Asked Questions About Mutual Funds Based on Market Capitalization

What is market capitalisation in mutual funds?
Market capitalisation refers to the total market value of a company's outstanding shares, used to classify mutual funds into large-cap (top 100 companies), mid-cap (101-250), and small-cap (beyond 250) categories based on investment allocation.
How much market capitalisation is good?
Market capitalisation suitability varies by investor risk tolerance and goals. Large-cap offers stability with lower returns, mid-cap balances growth and risk, while small-cap provides highest potential returns with maximum volatility and risk.
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
How can you invest in the best mutual fnds based on market capitalisation?
Here’s how you can start investing in the best mutual fnds based on market capitalisation:
1. Launch the Tickertape Mutual Fund Screener.
2. Select the best mutual fnds based on market capitalisation that matches your investment goals and risk appetite.
3. Click on “Place Order” and choose the “SIP” option. Enter your preferred SIP amount and confirm “OK”.
Your order will be placed.
How to identify the best mid-cap funds on Tickertape Mutual Fund Screener?
Here’s how to choose the best mid-cap funds -
1. Assess your risk tolerance.
2. Analyse the fund’s performance on Tickertape Mutual Fund Screener.
3. Compare the expense ratio.
4. Evaluate portfolio diversification across sectors, market caps, and asset classes.
5. Understand tax implications as equity and debt funds are taxed differently.
6. Check for exit load and lock-in period.
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
What’s the difference between a flexi-cap fund and a multi-cap fund?
Flexi-cap funds have no restrictions on the allocation of funds to market capitalisation segments. In contrast, multi-cap funds must invest in companies across different capitalisations, such as large-cap, mid-cap, and small-cap stocks.
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
Which mutual fund is best suited for short-term investment?
There is no one-size-fits-all answer, as the best mutual fund for short-term investment depends on individual goals and risk tolerance. Consulting with a financial advisor is recommended.
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
What are the best performing mutual funds based on market capitalisation?
Here are the top mutual funds based on market capitalisation, sorted according to their 5Y CAGR:
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.