Mid-cap mutual funds in India are mutual funds that invest primarily in the stocks of medium-sized companies. Mid-cap funds in India offer investors an opportunity to invest in companies with high growth potential but with a relatively lower risk than small-cap funds.
Features:
Mid cap mutual funds allocate funds to mid-cap companies that could be successful in future. These companies typically have a market capitalization Rs. 500 crores and Rs. 10,000 crores.
This brings a slightly higher potential for growth, and thus the possibility of relatively higher mutual fund returns.
However, the possibility of risk is higher as mid-cap companies are less able to cope with market volatility than are large caps.
Minimum 65% of the corpus needs to be invested in shares of mid-cap companies.
In conclusion, mid-cap mutual funds in India can be a good investment option for investors with a high-risk tolerance and a long-term investment horizon. Before investing, investors should evaluate the fund's performance, portfolio, expenses, and taxation implications. It is recommended to consult with a financial advisor to determine if mid-cap mutual funds are suitable for your investment needs and financial goals.
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