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8.24Mid-cap funds

1What is it?

Mid-cap funds invest at least 65% in companies ranked 101–250 by market cap.

2Why does it exist?

Mid-sized companies can grow faster, but they fall harder in bad times.

3Diagram
Invests inSuitsRiskSuggested horizon
Ranks 101–250 (65%+)Investors with higher risk appetiteHigh7+ years
4Quick revision
  • Mid-cap funds invest at least 65% in companies ranked 101–250 by market cap.
  • Risk: High.
  • Horizon: 7+ years.
5Knowledge check
Q1. Mid-cap ranks?Show answer

101 to 250.

Q2. Riskier than large-cap?Show answer

Yes.

Q3. Suggested horizon?Show answer

7+ years.

More in Level 8: Mutual Funds: Complete Beginner to Advanced