1. What are mid-cap mutual funds?
Mid-cap mutual funds invest primarily in mid-sized companies that offer a balance of growth potential and moderate risk.
2. Are mid-cap funds suitable for long-term investment?
Yes, mid-cap funds generally perform well over the long term due to the growth trajectories of mid-sized companies.
3. Which mid-cap funds currently show strong long-term returns?
Motilal Oswal Midcap Fund, Invesco India Midcap Fund, and Edelweiss Mid Cap Fund display strong multi-year CAGR performance.
4. Do mid-cap funds carry high risk?
Mid-cap funds carry higher risk than large-cap funds but lower risk compared to small-cap funds, making them a mid-level risk option.
5. How should mid-cap funds be selected?
Historical returns, expense ratio, fund size, and consistency across market cycles help in evaluating the right mid-cap fund.