Best midcap mutual funds to invest in April 2024
Before answering that question, let us cover the basics. Mid cap schemes invest in mid cap stocks or in stocks of medium-sized companies. As per Sebi norms, mid cap schemes are mandated to invest in companies that are between 101 and 250 in the market capitalisation. These companies can be leaders of tomorrow. That’s what makes them great bets. If these companies live up to the promise, the market will reward the investors handsomely.
Also Read | These 11 equity mutual funds deliver over 60% in one year. Did you make money?
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
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What happens when these companies don’t live up to their promises? Well, the market punishes such companies. And some of these companies would have managements that are not clean. In fact, corporate governance is an area that plagues many mid cap and small cap companies. Markets, again, punish such companies severely.
This is what makes investing in mid cap companies risky. Being a mutual fund investor, you cannot overlook these aspects of investing in mid cap companies. You should invest in these schemes only if you have very high risk tolerance. You should also have a longer investment horizon of, say, seven to 10 years. A longer investment horizon would help investors to navigate the volatility better.
Sure, the valuations have peaked. So, investors shouldn't look for quick gains. Now is the time for great caution. Proceed with your regular investments. However, be prepared for some
