Mid-Cap Fund

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Mid-Cap Fund

A mutual fund that invests primarily or exclusively in mid-capitalization stocks. In general, a mid-cap fund invests in companies with market capitalizations between $2 billion and $10 billion, but there is no specific definition. Some brokerages or exchanges have slightly different definitions of mid-cap. Mid-cap stocks are sometimes attractive because they are considered to have less volatility than small cap stocks, but more growth potential than large cap or blue chip stocks.
References in periodicals archive ?
Small and midcap funds are other options if one wants to invest over a larger time frame preferably over five years.
Coming to the third option-- small and midcap funds.
Small- and midcap funds typically outperform in an upward trending market owing to the marginal incremental risk they take.
2014 was the year of political fairy tales in Asia, led by India's spectacular bull market (most midcap funds up 100 per cent) as $14 billion in offshore funds flooded Dalal Street equities on BJP/Modi euphoria.
Large cap funds choices could include ICICI Pru Focussed Bluechip and DSP BR Top 100 and Midcap Funds like HDFC Midcap Opportunity or IDFC Premier Equity.
By some people's measures, midcap funds have outperformed all other categories of mutual funds over the last 15 years.
3 billion, making it one of the largest nonproprietary midcap funds in the industry.
Midcap funds specializing in stocks of medium-sized market value led the broad categories of stock funds in the third quarter, returning 3.
On the contrary, a large size can pose challenges for small- and midcap funds in the form of marketimpact cost, the opportunity cost of having to spread out trades over longer periods and liquidity management," says Mehta of Morningstar.
It's pertinent to note that midcap funds have not fared as well as large-caps over the longer term.
Midcap funds emphasize midcap growth stocks where sales and earnings are expected to accelerate rapidly--recent holdings include lesser known, established firms such as Med-Immune Inc.
18% return of all midcap funds for the same period, according to Morningstar Inc.