These mutual funds invest in companies in the mid cap category, which includes stocks listed between 100 and 250 in terms of size (market capitalization). Larger stocks are regarded to be less hazardous, but smaller firms may have greater growth potential.

Advantages of Mid-Cap Funds

1. Access to high-growth stocks that can give market-beating returns.
2. The smaller size makes them more likely to falter during tough market conditions.
3. Suitable for aggressive investors with 7+ year investment horizon.