Spike in volatility in 2020 could spur significant changes in MF stocks

Half a dozen stocks tipped to exit large-cap bucket, with 17 leaving the mid-cap universe

The spike in volatility this year could spur higher-than-normal changes to stocks in the large-cap, mid-cap, and small-cap categories of equity mutual funds (MFs). The benchmark Sensex has swung 65 per cent — touching an intra-day high of 42,273 in January and low of 25,639 in March — this year, the most since 2008.

The broader market-focused mid-cap and small-cap indices, too, have seen similar swings. Depending on changes to half-yearly market capitalisation (m-cap), stocks fall into one of the three categories — large-cap, mid-cap, or small-cap.

An analysis done by Edelweiss says the mid-cap universe — comprising firms that rank 101-250