"Mid-caps are those which, in terms of company size, lie between large-caps and small-caps.
Mid-cap stocks can outperform their large-cap counterparts during a bull phase, as these companies seek to expand by searching for appropriate growth opportunities.
Nonetheless, investors will remember that the underlying stocks are more volatile than their counterparts on the large-cap.
Mid-cap funds are known as mutual funds that invest primarily in mid-cap organizations.
Through prudent stock selection, sector-wide diversification, and timing of the market, fund managers seek better returns.
Mid-cap equity funds are advised for investors with a higher risk tolerance than large-cap investors.
So, invest in these schemes if you seek higher capital appreciation, albeit with reasonably higher risk.
Mid Cap Fund :These mutual funds select investment stocks from the
mid-cap category–stocks ranging from 100 to 250 per size (market capitalization).
Larger stocks are expected to be less risky, while smaller stocks may have higher growth potential.