The three categories reveal the risk-return trade-off. Large-cap stocks tend to be less volatile and consistent in their returns and thus would be safer to an investor with a risk aversion factor. They are proven over time in the delivery of stable performance. They, however take relatively more time to grow in comparison to the smaller companies.
Mid-cap stocks lie in the middle of the risk spectrum. They tend to provide a balance between stability and growth potential, which is why they are generally attractive to investors who seek both. They can be more volatile than large-caps, but they