Mid-cap stocks are shares of companies that fall between large-cap and small-cap in terms of market capitalisation—broadly defined by SEBI as companies ranked 101st to 250th by market cap on Indian exchanges. The Nifty Midcap 150 index tracks this segment. Mid-cap companies are often in an exciting growth phase, with the potential to become tomorrow's large-caps, but they carry more risk than established blue-chips. They tend to be more volatile, less liquid, and have fewer analyst followers than large-caps. For investors with a medium-to-long horizon and moderate-to-high risk tolerance, mid-caps have historically delivered strong returns over full market cycles in India.