Rain is water, which has condensed around nuclei and accumulated to form large droplets. Clouds stay in the air because when the water condenses, latent heat is released which maintains the cloud in the atmosphere.
Mist on the other hand, is a low-lying cloud made of much finer droplets. If the air is sufficiently saturated and there are sufficient nuclei present then the water may condense into a mist of fog. This happens when due point temperature is reached; ie: the temperature at which atmospheric moisture in the form of gas condenses to liquid.
A fog and mist are quite similar. They develop when the ground (which is cooler than the air) causes the air to cool and the water to condense. Alternatively, a warm and cold body of air may meet, which will cause some of the warm air to cool and again, the gaseous moisture will condense. " Mist is a visibility between 1000 and 2000 metres. Normally, over land, forecasters use the word "fog" when the visibility is 200 metres or less."