The new category list by AMFI has few surprises

Association of Mutual Funds in India (AMFI) has recently issued a new list of companies segregated into different categories as per SEBI Circular dated October 6, 2017. This is the second list after the SEBI circular and is supposed to come twice every year.

In the latest list, there are only 41 companies that saw their category change. This means there were some companies that were large-cap in the last list, but are now mid-cap and some of them who were mid-cap are now large-cap. Some of the notable changes are Biocon and SAIL, which were in mid-cap in the last list in the month of December, but are now part of the large-cap list. The average capitalisation of these companies has increased by 55 and 20 per cent, respectively in the last six months. Overall, six companies that were mid-cap in the last list are now part of the large cap. Against this, there are also some other companies like ACC and ABB that were categorised as large-cap in December 2017 list that are now part of mid-cap. The market cap has declined by 11 per cent and 2 per cent, respectively in the same period. There are eight such companies that have been now categorised as mid-cap against large-cap in the last list. There are 12 companies that have moved from small-cap to mid-cap and 15 companies from small-cap to mid-cap category.

The changes are not drastic and hence we do not see much churning in the portfolio of mutual fund schemes.

Here is a statistical summary of the market cap of different categories of companies