What is a Mid Cap Funds?
Mid Cap Funds are equity mutual funds that primarily invest in the stocks of companies with a mid-sized market capitalization, typically ranked between 101 and 250 in a stock market index. These companies are in their growth phase, offering a balance of higher growth potential compared to large-cap stocks, but with moderate risk.
Why Choose DeepPriya for Mid Cap Funds?
- Higher Growth Potential: Mid-cap companies typically grow faster than large-cap companies, providing a better chance for higher returns.
- Balanced Risk: These funds offer a mix of stability (from large-cap stocks) and growth (from small-cap stocks), making them less volatile than small-cap funds.
- Opportunity in Growth Phase: Investing in companies during their growth phase provides the chance to benefit from their expansion.
- Ideal for Long-Term Goals: Mid Cap Funds are best suited for investors with a **medium-to-long term** investment horizon (5–10 years).
- Diversified Exposure: They provide exposure to mid-sized companies across various sectors, promoting diversification in your portfolio.
FAQs for Mid Cap Funds
Mid Cap Funds are suitable for investors who are looking for higher returns than large-cap funds and are willing to take on moderate risk. These funds are ideal for those with a long-term investment horizon (5–10 years).
The main advantage of Mid Cap Funds is the potential for higher returns compared to large-cap funds, while offering a balanced risk profile. They allow investors to benefit from the growth of companies in their expansion phase.