Top ten Mid Cap Mutual Funds to invest in 2022

In one of the previous articles, we have talked about all types of mutual funds. The best large cap funds for 2022 have already been discussed. In this article, top ten mid-cap mutual funds have been given.

 Mid-cap mutual funds can fetch more returns than large-cap funds and debt funds. They end up earning more returns than their benchmarks. These funds invest in equity linked securities of those companies whose capitalization is in the range of Rs 5000 crores to Rs. 20,000 crores. These companies have a high growth potential. However, it should be noted that they are riskier than large-cap funds. The investors who are ready to take higher risk can include these kinds of funds in their portfolio as mid cap funds are more likely to face the market and business risks. 

When the markets are bullish, mid-cap funds outperform large cap funds. They can give capital appreciation at a faster pace. Usually, large cap funds get more attention than mid-cap funds. But when markets are not doing well, their value goes down. Liquidity issues are faced because of smaller capital base. Yet, one may go for a mid-cap fund depending upon one’s requirement. Here is a list of top ten mid cap funds that you may like to invest in:

Before investing in any mid cap mutual funds, you should know your financial goals. And assess the time required to achieve those goals. If you need the money, say after five years, then you choose a fund which offers you a good capital appreciation as per your goals. Judge the performance of scheme for a few years against its peer funds and benchmarks. Check the credentials of the fund house. AUM of any scheme is very important. Expense ratios and the loads charged at the time of exit should be considered. Know about the sites that track the fund performance. Your risk appetite is a decisive factor for investment decisions, for example, you can invest in a large cap equity fund or a balanced fund if you can take moderate risk. It is important to know the parameters that can help you decide the best suitable mutual fund for yourself. 

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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