How are you all? Through one of our previous articles, we introduced you with the most recommended Large-Cap mutual funds, for the financial year 2020, today here we are with the most recommended Mid-Cap Mutual Funds, where any individual can consider their investment in the year 2020.
Mid-Cap Funds are considered as future market leaders, and this is the prime reason for investor's inclination towards Mid-Cap Funds. Let us know about, what are Mid-Cap Funds and about top-performing Mid-Cap funds.
What Are Mid-Cap Mutual Funds?
Mid-Cap funds are a type of equity mutual fund, that focuses its investment in the shares of Mid-Cap Companies. It has been observed that Mid-cap funds have the potential to outperform Large-Cap mutual funds in the long term, but at the same time, the risk associated with Mid-Cap funds are higher as they are emerging companies.
As per SEBI (Security Exchange Board of India), Mid-cap companies are referred to those companies that lie between the 101st-250th largest companies in terms of market capitalization. Midcap companies have the potential to deliver superior returns due to higher earnings growth rate.
Who Should Invest in Mid-Cap Mutual Funds?
Mid-cap Fund Investments do contain risk as they are associated with emerging companies, that’s why, these funds are vulnerable to fluctuations in the market movements, whether the market is bull or bear, performing upward or downward. This vulnerable feature of Mid-cap funds makes it unfit for investors who are novice (new) to the investment sector or have a very low or neutral risk profile.
Basically, investors who think, they can tolerate the high risk and can continue their investment for up to 7-10 years, investing in Mid-cap funds can be considered as a good option for them.
Benefits of Investing in Mid-Cap Funds
Instead of volatile nature of Mid-cap Funds towards market performance, there are some benefits of investing in Mid-cap Funds, that I am listing here:
- Staying invested for long-term in mid-cap funds, yield good returns to their investors, in fact, if investors continued their investment in mid-cap funds for 10 years or more, their mid-cap funds may outperform the large-cap funds, and generate good returns, instead of its volatile nature.
- Mid-cap companies have more potential to grow than large caps, also these firms respond faster to new innovations and changes in the market, this increases the market share of mid-cap funds, which ultimately ends in higher NAV and profit margins for the investors.
Top 10 Mid-Cap Mutual Funds to Invests in 2020
We have prepared a list of top 10 best recommended Mid-cap funds, for the financial year 2020, after a good analysis of different Mid-cap funds. These funds have been selected on the basis of their past returns and performance.
As of now, you are aware of the facts related to Mid-cap Funds and know about the top-performing Mid-cap funds of the financial year 2020, plan your investment in Mid-cap funds, carry it for a long term, and enjoy the benefits earn on your investment.
Most importantly, always consult a financial planner or advisor, before starting your investments. They will help you select the best fund, for your investments as per your requirement.
You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).