1. Are mid-cap funds risky?
There’s moderate risk, since medium-sized firms can fluctuate more in their prices than large capitalization firms. But at the same time, they also have greater long-term growth potential.
2. Who should invest in mid-cap funds?
If you are looking for better returns than conventional large-cap funds with an investment horizon of medium to long term, mid-cap funds could be the perfect pick.
3. How long should I stay invested?
Mid-cap funds are at their best when held for 5 to 7 years or longer.
4. Do mid-cap funds perform better than large-cap funds?
Traditionally, mid-cap stocks have been the way to go for long-term investors given their rapid growth, although they still go through the ups and downs of the market.
5. Is SIP a good way to invest in mid-cap funds?
Yes, SIPs lessen the impact of volatility and distribute the purchase costs in the long run.