How Do Mid Cap Mutual Funds Work

Mid Cap Mutual Funds pool money from multiple investors to invest in a diversified portfolio of stocks from companies ranked 101-250 by market capitalisation in India. These funds mandate a minimum 65% investment in mid-cap stocks. Fund managers analyse market trends, company financials, growth prospects, and economic factors to select stocks with strong potential for capital appreciation.

These mid-sized companies represent businesses that have established their business models yet have substantial room for growth. This balance between proven stability and higher growth potential makes mid cap funds suitable for investors seeking growth-oriented investment options while maintaining a moderate risk profile in their diversified portfolio.