Achi news desk-
New Delhi13 hours ago
- Copy link
In the last one year, the BSE Mid Cap index has seen a growth of more than 65%. Due to this, even the middle share funds category of mutual funds gave returns of up to 71% in the last year. If you are planning to invest in mutual funds these days, then a mid-cap stock fund can be a good option.
If you can take risk then investing in mid cap mutual funds can give you good returns. Here we tell you about it.
First of all know what mid-range mutual funds are
A medium-sized mutual fund is a fund that invests mainly in shares of medium-sized companies. Mid-cap companies are companies with a market capitalization of more than Rs 5,000 crore, but less than Rs 20,000 crore.
Invest only if you have the ability to take a risk
Mid-cap funds carry more risk than large-cap funds. Therefore, only those people who can take more risk in their investments should invest in this fund. Other than that, it is a good long-term investment. In such a situation, if you want to invest for long term i.e. more than 5 years, then you can invest in it.
You can invest 20 to 30% of the portfolio
According to experts, it would be correct to invest 20 to 30% of the portfolio in this. That is, if you have a total of 100 rupees to invest, then you can invest 20 to 30 rupees in it. It will be beneficial to invest in it for the long term.
It is better to invest through SIP
Instead of investing money in mutual funds at once, one should invest through a systematic investment plan i.e. SIP. With SIP you invest a fixed amount every month. This further reduces the risk, as it is not much affected by market fluctuations.