This blog will help you understand how mid-cap mutual funds work. Understand what type of stocks mid-cap funds invest in. Find out how you can invest in the best mid-cap funds in India.
Mutual funds are a diverse asset that contain various categories based on the type of assets like stocks they invest in. In this blog, we'll take a look at one such mutual fund known as mid-cap funds.
A mid-cap fund is an equity mutual fund. Like all other mutual funds, they are a pool of money managed by a professional fund manager. Mid-cap funds invest in mid-sized companies that fall between Rs.500 Crore to Rs.10,000 Crore in terms of market capitalization. This makes it less volatile in comparison to small-cap funds.
Whether or not you invest in mid-cap funds depends on your age, risk appetite, financial goals and portfolio allocation. There are certain benefits or pros of investing in Mid-Cap Funds. If these appeal to you then you must consult your wealth coach. The benefits include:
While mid-cap funds have the above-listed benefits there are certain disadvantages or cons of investing in mid-cap funds as well.
The thing to note is that the intent to invest in mid-cap funds alone is not enough. You must ensure that your portfolio is balanced and is aligned with your risk appetite and time horizons. That said here are some reasons people invest in mid-cap mutual funds:
To tell you whether you should invest in Mid-Cap funds a lot more information is required. You should never pick mutual funds to invest in on your own. Always consult a financial advisor or Wealth Coach for this purpose. You can also try Cube Wealth’s QuickSIP feature to check which funds suit your risk appetite.
Check out our video on How to Build the Perfect Investment Portfolio
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