|Name of Fund||5 Year Returns (p.a.)||Scheme Category|
|DSP Midcap Fund||17.52%||Mid Cap|
|L&T Midcap Fund||16.70%||Mid Cap|
|Aditya Birla Sunlife Midcap Fund||17.20%||Mid Cap|
|SBI Magnum Midcap Fund||17.49%||Mid Cap|
|Sundaram Midcap Fund||18.98%||Mid Cap|
Mid-cap funds are the ones that ranks in between 101 and 250 listed on the stock exchange by full market capitalization. Each fund has a unique objective hidden behind them. Thus, fund managers advise or invest based on the investor’s objective. The main objective of a mid-cap fund is that they are growth-oriented. Meaning, the investors who have an objective of growing their investment over a period of time can consider mid-cap funds as an ideal option.
High growth: Mid-cap funds have some traits of large-cap and small-cap funds resulting in high growth-rate. As they are neither at the initial stage nor are well-established, their growth is comparatively high.
Risk factor: Mid-cap funds have higher risk than large-cap funds and lower than small-cap funds. However, with the use of technology, an investor can easily track the performance of mid-cap funds.
Good management: As mid-scale companies are constantly growing, they have a good internal management system. This is one unique characteristic of mid-scale companies. The management, with its decision-making skills contributes towards higher growth and functioning.
Cost effective: Mid cap companies tend to yield high returns, if invested for extended periods. Since, these companies don’t fall under limelight; it can be a smart move for the investors to boost their portfolio.
Companies are either large, mid, or small-scale. All of these types have different characteristics that affect the equity-related instruments at a great extent. Large-scale companies are the market players and the well-established ones. However, mid-scale companies are in-between small and large companies. Hence, the growth rate of mid-scale companies is often higher than large-scale companies.
Large companies have a negligible scope of growth, whereas, mid-sized companies have a vast area for development. These are the established companies offering diversified portfolio and provide market a substantial part of their capital structure. The volatility level of mid-cap companies is higher than large-cap companies, thus providing higher returns.
Mid-cap funds are ideal if you are a risk-taker. They offer high returns with a diversified portfolio. There is a high probability of these companies becoming a large company. If this happens, you can yield a large chunk of money out of it. They are ideal if you have a long investment horizon as they don’t work well for short-term.
Mid-cap funds are always the ideal investment option for young and matured investors. If as an investor, you’re willing to take greater risk and explore the volatility of the market, you may invest in this fund. Last but not the least, always invests your savings after duly checking your risk profile.
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