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 in | Suits | Risk | Suggested horizon |
|---|---|---|---|
| Ranks 101–250 (65%+) | Investors with higher risk appetite | High | 7+ 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.
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