Who Should Invest in Mid Cap Funds?
Last Updated : Aug. 6, 2019, 2:45 p.m.
Schemes that have a major proportion of their corpus invested in the stocks of mid cap companies are called mid cap funds. A company is categorized as a mid cap company based on its market capitalization. In India, companies who are listed between 101 to 250 based on their market capitalization are considered as mid cap companies.
Recommended Mid-cap Funds to Invest in
| Fund Name | 1-year Return | 3-year Return | 5-year Return | ||
|---|---|---|---|---|---|
| Reliance Growth Fund | -8.44% | 5.34% | 9.03% | ||
| Franklin India Prima Fund | -10.45% | 4.53% | 11.57% | ||
| Axis Midcap Fund | -4.71% | 9.55% | 11.26% | ||
| HDFC Mid-Cap Opportunities Fund | -15.66% | 4.28% | 10.73% | ||
| DSP Midcap Fund | -11.09% | 5.33% | 11.94% |
Note: All the data that has been mentioned in this articleis sourced from Value Research as on Aug 5, 2019. Return data mentioned is in regards to Regular Plan.
The stocks of mid cap companies are extremely volatile because it is hard to predict the growth of these companies. Some of these companies are new to the business and are like tightrope walkers. If they triumph, they make investors rich. But if they fall, they end up hurting the investor tremendously. Mid cap equity funds are for people who have a high risk appetite. These schemes are for investors who inherently know what the consequences can be in bearish markets. Always remember – wherever there is high risk, there are high returns.
New investors should definitely refrain from investing in mid cap equity schemes – it’s highly advisable by mutual fund advisors. Only informed and smart investors should undertake mid cap fund investments. This is because these kinds of investments require a certain degree of research and predictive abilities before investing. If one is ready to reap the fruitful returns, one should also be ready to take a huge blow on their stomach, in bearish conditions. Cautious and conservative investors should always go for large cap funds where returns are stable.
What are the Advantages of Investing in Mid Cap Funds?
- Better Returns: There have been instances where mid cap funds have outperformed by beating the benchmark high during bullish markets. It provides definitely better returns than large cap funds.
- High Growth Prospects: Mid cap funds invest in companies that are on their mission to become big companies. It’s a win for the investors if a mid company reaches the zenith.
How to Invest in Mid Cap Funds Online?
If you wish to invest in Mid Cap Mutual Funds, you can do so through Wishfin, a financial marketplace, where you can choose the best sector funds for you and rule out the ones that doesn’t seem a great fit by comparing. To invest, all you have to do is follow the below mentioned steps:
- Log on to www.wishfin.com
- Go to ‘Mutual Funds’
- Click on on ‘Login/Register
If you are a new investor who is keen on investing, you need to follow the below mentioned registration process.
Registration Steps:
- Mention your mobile number
- Click on ‘Next’
- Enter the One-time Password (OTP) received on your mobile number
- Click on ‘Verify and Continue’
- Mention full name, email, city
- Create a password that must have the required number of alphabets, numeric and special characters
- Click on ‘Sign Up’
- Mention a few more details before the registration can be made successfully
Login Steps
- Mention your email or mobile number
- Click on ‘Get OTP’ to receive the same
- Enter OTP at the prescribed space
- Click on ‘Login’
- Go to ‘Explore Mutual Funds’
- Go to ‘Equity’ and then on to ‘Mid Cap Funds’
- Click on ‘Invest’ below any of the sector funds shown above
Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.