A Mid-Cap Fund is a pooled investment vehicle (e.g., a mutual fund or ETF) that explicitly invests in the stocks of mid-cap companies, or companies with market capitalizations ranging from approximately $2 billion to $10 billion. Mid-cap funds offer investors exposure to a segment of the market that typically exhibits higher growth potential than large cap stocks, but with less volatility and downside risk than small cap stocks.Mid-cap funds can be an attractive option for investors who are seeking to diversify their portfolios and capture some upside potential while still maintaining a relatively low level of risk. While there are no guarantees in the stock market, investing in a well-managed mid-cap fund can provide you with the opportunity to generate superior returns over the long term without subjecting your portfolio to excessive levels of volatility.
