Mid Cap Mutual Funds

Yes. Mid-cap mutual funds, like all equity funds, are better suited for long-term investing because they help you ride out short-term market volatility. You can even benefit from compounding if you choose SIPs.

Mid-cap funds may be suitable for you if you have a long-term investment horizon, can tolerate high levels of market-linked risk and are a seasoned investor with some market knowledge.

The returns from mid-cap funds are market-linked and therefore, vary from one year to the next. Broadly, remaining invested over the long term has historically yielded favourable returns for investors.

Yes, these mutual funds carry some risks like exposure to market volatility, liquidity risks and general market-linked systematic risk. Furthermore, they also carry unsystematic risks based on the companies in the portfolio.

Yes, returns from mid-cap mutual funds are taxed the same as the returns from any other equity-oriented funds. Short-term capital gains are taxed at 20%. Long-term capital gains exceeding Rs. 1.25 lakh are taxed at 12.5% without any indexation benefit. 

This depends on your investment budget, risk tolerance, financial goals, age, income, other debts and your tax goals.

Your investment horizon should align with the timeline of the financial goals you wish to achieve using the returns from the mid-cap mutual funds.

Generally, long-term investments are advisable.

These mutual funds invest at least 65% of their capital in mid-cap stocks — which are issued by companies ranked from 101 to 250 in terms of their market capitalisation.

Mid-cap mutual funds carry a moderate risk level, as they invest in companies with medium market capitalisation. While they offer higher growth potential than large-cap funds, they can also be more volatile. Investors should consider their risk tolerance and investment horizon before opting for mid-cap funds, ideally aiming for a longer-term perspective.

Investing in mid-cap mutual funds can be beneficial if you seek higher growth potential and are willing to tolerate moderate risk. These funds offer a balance between stability and capital appreciation, making them suitable for investors with a long-term investment horizon and a moderate risk appetite. Always align investments with your financial goals.

You can buy mid-cap index mutual funds through online platforms, such as the Bajaj Finserv app, or directly via the fund house's website. Simply choose your desired fund, complete the KYC process, and invest through a lump sum or SIP. Consider factors like fund performance, fees, and investment goals before making a decision.

The timing for investing in mid-cap mutual funds depends on market conditions and your financial goals. These funds typically perform well in a growing economy but can be volatile during market downturns. Assess your risk tolerance and investment horizon, and consider market trends before investing to maximise growth potential while managing risks.

Mid-cap funds carry a moderate to high risk as they invest in companies ranked between 101 to 250 by market capitalisation. While they offer higher growth potential than large-cap funds, they are also more volatile, especially during market downturns. However, their diversified nature helps reduce individual stock risk, making them a balanced option for investors with a moderate risk appetite and long-term perspective.

The amount to invest in mid-cap funds depends on your risk tolerance, financial goals, and investment horizon. Ideally, mid-cap funds should constitute 15-25% of a well-diversified portfolio. You can start with Systematic Investment Plans (SIPs) as low as Rs. 500 per month or make a lump sum investment based on your financial capacity and market conditions. A long-term approach helps maximize returns.

Yes, mid-cap funds are ideal for long-term investments (5-10 years or more). They have the potential for higher growth as mid-sized companies expand into large-cap entities. While they experience short-term volatility, their long-term performance tends to be strong, making them suitable for wealth creation, retirement planning, or funding future goals like education or homeownership. Patience and strategic investing can yield substantial returns.