Mid-cap funds gave 71% return in one year: Investing in it is risky, know how right it is to invest in it

In the last one year, BSE Mid Cap Index has seen a growth of more than 65%. Due to this, the mid cap equity fund category of mutual funds has also given returns of up to 71% in the last one year. If you are planning to invest in mutual funds these days, then mid cap equity fund can be a good option. If you can take risk then investing in mid-cap equity funds can give you good profits. Here we are telling you about it. First of all, know what are mid cap mutual funds. Mid-cap mutual fund is the fund which mainly invests in the shares of mid cap companies. Mid-cap companies are those with market cap more than Rs 5,000 crore, but less than Rs 20,000 crore. Invest only if you have the ability to take risk. Mid-cap funds carry 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, it is a good investment for the long term. In such a situation, if you want to invest for a long term 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 this. That means, if you have a total of Rs 100 to invest, then you can invest Rs 20 to 30 in it. It will be beneficial to invest in this for long term. 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 every month. This further reduces the risk, because it is not much affected by market fluctuations.

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