If you are planning to invest in mutual funds these days, then mid-cap funds can be a good option. This fund category has given a return of more than 82% in the last 1 year. If you can take risks, then investing in mid-cap funds can give you good benefits. We are telling you about mid-cap funds … First of all, know what are mid-cap mutual funds. Mid-cap mutual funds are those funds in which investments are made mainly in the shares of mid-cap companies. Mid-cap companies are those whose market cap is more than Rs 5,000 crore, but less than Rs 20,000 crore. Companies ranked 101st to 200th in terms of market cap are also called mid-cap companies. Invest only if you have the ability to take risks. Mid-cap funds have more risk than large-cap funds. Therefore, only those people who can take more risk in their investments should invest in this fund. Apart from this, investing in it is right for the long term. In such a situation, if you want to invest for a long period i.e. more than 5 years, then you can invest in it. You can invest 20 to 30% of the portfolio According to experts, it would be right to invest 20 to 30% of the portfolio in it. That is, if you have a total of 100 rupees to invest, then you can invest 20 to 30 rupees in it. Investing in it for the long term will be beneficial. Investing through SIP will be right Instead of investing money in mutual funds all at once, one should invest through Systematic Investment Plan i.e. SIP. Through SIP, you invest a fixed amount in it every month. This further reduces the risk, because it is not affected much by the volatility of the market. These mid-cap funds have given better returns in the past years Source: Grow, 25 May 2024
