What Are Mid-Cap Mutual Funds? How to start investing in a Mid Cap Fund?

Mid-cap funds are equity schemes that invest mainly in mid-sized companies that are ranked between 101st and 250th in terms of full market capitalisation. As per SEBI rules, these funds must invest at least 65% of their portfolio in mid-cap stocks. 

Usually, these companies have a strong business history but are smaller and less established compared to large-cap companies. Because of this, mid-cap investment funds carry relatively higher risk than large-cap funds.

Additionally, mid-cap mutual funds may have the potential to deliver higher growth, but their performance is more sensitive to market changes. Also, since mid-cap companies have a smaller market presence, they may not always be part of major stock market indexes.

So, want to invest? In this article, let’s first check out the different types of mid-cap funds and then learn how you can invest in them. Lastly, we will see some mid-cap investment funds, you can consider investing in 2025.