Unlock High Returns: Invest in Mid-Cap Funds for Up to 52% Profits in the Last Year

If you are contemplating investing in mutual funds these days, mid-cap equity funds can be a viable option. This fund category has delivered returns of over 52% in the last year alone. Investing in mid-cap equity funds can yield substantial returns if you are willing to take risks. We will provide you with more information about these funds.

Understanding What Mid-Cap Mutual Funds Are

Mid-cap mutual funds are funds primarily invested in the shares of mid-cap companies. Mid-cap companies are those whose market capitalization is more than INR 5,000 crores but less than INR 20,000 crores. Companies ranked 101 to 200 by market capitalization are considered mid-cap companies. These funds are referred to as mid-cap funds.

Opt for Investments in Mid-Cap Funds If You Can Take Risks

Mid-cap funds tend to carry higher risks compared to large-cap funds. Therefore, those who can afford to take more risks often choose to invest in mid-cap funds. In situations where you are looking for long-term returns, such as investing for more than five years, mid-cap funds can be a suitable option.

You Can Allocate 20-30% of Your Portfolio

According to experts, allocating 20-30% of your portfolio to mid-cap funds is advisable. This means that if you have a total of INR 100 for investment, you can invest INR 20-30 in mid-cap funds. Investing a reasonable portion of your portfolio in mid-cap funds can be beneficial for long-term gains.

SIP Investments Can Be More Beneficial

Rather than investing a lump sum in mutual funds, individuals are recommended to opt for a systematic investment plan (SIP). Through SIP, you invest a fixed amount every month. This strategy is considered more advantageous as it is less impacted by market volatility and provides a disciplined approach to investing.