What Makes Mid-Cap Funds A Better Choice?

What are Mid-Cap Funds?

Given the historical tendency for mid-cap funds to outperform large-cap funds in the long run, it’s plausible that mid-cap funds can continue their performance from this point onwards. This makes investing in mid-cap funds a good choice. The article highlights how mid-cap funds have performed and the associated risks.

Since the beginning of this year, equity indices have been on a remarkable ascent, particularly the broader equity market indices. For instance, the Nifty Mid-Cap 150 index has surged by 23 per cent year-to-date, a remarkable contrast to the single-digit returns offered by Large-Cap indices like Nifty and Sensex during the same period. Following a pendulum-like pattern, mid-cap stocks are emerging strong in FY24 after exhibiting subdued returns in the previous financial year of 2022-23. This resurgence is already evident in the past few months.