GreenFunds Education, not financial advice India
Types of schemes, and picking one · 7 min

Equity funds, by size and style

Large, mid, small and the rest

Equity funds get a hundred marketing names, but the exam sorts them mostly by one thing: the size of the companies they buy. Anchor on that and the labels line up.

This lesson teaches a concept for the NISM Series V-A exam. It is education, not financial advice.

  1. 1

    Equity funds are grouped by the size of the companies they buy: large, mid and small cap.

  2. 2

    Large cap is the top 100 companies by market value; mid cap the next 150; small cap the rest.

  3. 3

    Flexi cap and multi cap funds hold a mix across all sizes.

  4. 4

    ELSS is an equity fund with a 3 year lock-in that qualifies for a Section 80C deduction.

  5. 5

    Index funds simply track an index like the Nifty 50, at low cost.

Rupee example

A large cap fund buys established giants; a small cap fund chases smaller, riskier, faster growers.

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Practice

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Real exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.

Answer by voice
Tap the mic and say A, B, C or D. Typing is optional.

Large cap funds invest in:

Large cap means the top 100 companies by full market value, as ranked for SEBI's categories.
It is a ranked list by size, not any 100 or new firms.

Mid cap companies are ranked:

Mid cap is the 101st to 250th company by market value. Small cap is 251st onwards.
Top 100 is large cap; 251st onwards is small cap.

ELSS funds have a lock-in of:

ELSS locks money for 3 years and qualifies for a Section 80C deduction.
It is the shortest lock-in among common 80C options, but it is not zero.

An index fund aims to:

An index fund simply mirrors an index, which keeps its cost low.
It does not try to beat or time the market.

Which usually carries the most risk?

Small cap funds swing the most, up and down, so they carry the most risk.
Large cap and index funds are steadier; a liquid fund is a debt product.

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NISM V-A syllabus

1What a mutual fund really is2How a fund is built3Who watches over it4The offer document, decoded5Getting funds to investors6Selling the right way8NAV, loads and the daily price9Types of schemes, and picking one10Return, risk and performance11How gains are taxed12Serving the investor See the full roadmap →

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