Mid Cap Fund — Mutual Fund Term Explained

A fund investing at least 65% in companies ranked 101-250 by market cap. Higher return potential than large cap but significantly more volatile.

Mid cap funds invest at least 65% in companies ranked 101st to 250th by full market capitalisation. These businesses have proven models but significant growth potential.

Historically outperform large caps over 7-10 years in India but can fall 40-50% in bear markets. Minimum 7-year horizon recommended.

Related terms

• Large Cap Fund — A fund investing at least 80% in the top 100 companies by market cap. Lower volatility with stable blue-chip exposure.
• Small Cap Fund — A fund investing at least 65% in companies ranked 251+ by market cap. Highest return potential but most extreme drawdowns. Requires 10+ year horizon.
• Flexi Cap Fund — An equity fund with no restriction on market cap allocation. The manager can invest freely across large, mid and small cap stocks.
• Drawdown — The percentage decline from a fund's peak NAV to its subsequent trough. Shows how badly a fund fell from its high point.

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