The choice of the best mid-cap mutual funds for your portfolio depends on your financial goals, risk tolerance, and investment horizon. You can compare the top mid-cap mutual funds and make an informed decision.
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.