This article explains market capitalization and its role in categorizing stocks into large-cap, mid-cap, and small-cap segments, detailing the risk-return characteristics and growth potential of each. It provides practical guidance on building a diversified portfolio through strategic allocation across these categories, with examples from the Indian stock market. Ideal for investors seeking to balance stability and growth while managing risk effectively.

This article explains market capitalization and its role in categorizing stocks into large-cap, mid-cap, and small-cap segments, detailing the risk-return characteristics and growth potential of each. It provides practical guidance on building a diversified portfolio through strategic allocation across these categories, with examples from the Indian stock market. Ideal for investors seeking to balance stability and growth while managing risk effectively.