Shares can be categorised into the following types based on their market cap:
Large-cap stocks: These refer to equity shares of the top 100 companies in India concerning market capitalisation. They carry the least risk but have lower growth potential.
Mid-cap stocks: These are shares of companies ranking from 101st to 250th based on market capitalisation.
Small-cap stocks: These companies have a rank of 251st or below. They are usually volatile but offer the highest growth potential.