Midcap Funds :
They invest predominantly in Mid sized companies. A small portion may be invested in Small Cap companies. The balance would be invested in Large Cap companies.
bull ;Mid Cap companies are those which has grown up from a small industry and is likely to become a large cap company. Hence the growth rate is fast – not to underestimate the risk associated with it.
Mid cap companies price volatility is huge – resulting in high degree of fluctuation in fund's Net Asset Value (NAV).
Investors with investment horizon of 5 years plus can invest in Mid cap funds.