New Delhi, Aug. 26 -- Mid-cap and small-cap funds are equity mutual fund categories that invest predominantly in their respective market-cap segments. Under SEBI's categorisation framework, both categories must invest at least 65% of their total assets in mid-cap or small-cap stocks, respectively.

Mid-cap stocks are generally considered less volatile than small-cap stocks, while small-cap stocks can offer higher growth potential but also come with greater risk. However, returns are not the only way to assess how a fund has performed against its benchmark. Alpha provides another important measure.

According to the latest AMFI July 2026 data, there are a total of 33 mid-cap funds and 36 small-cap funds.

According to Value Research data, ...