Mid-caps: Balancing Growth & Stability
Ratin Biswass / 21 Aug 2025/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

I am a new investor looking to begin my investment journey. Instead of focusing solely on Large-Caps, I wish to allocate funds to a broader segment, while keeping a relatively conservative approach. Hence, I am considering Mid-Caps. Could you guide me on this? - Gaurav Panthare [EasyDNNnews:PaidContentStart]
Editor Responds : Mid-cap companies occupy the sweet spot between stability and growth. They are more agile than largecaps, often capturing new business opportunities, yet less volatile than Small-Caps. Over the long term, mid-caps have historically delivered superior risk-adjusted returns, making them suitable for investors seeking growth without excessive risk. Mid-cap mutual funds offer diversification across sectors and reduce the risk of exposure to a single company. However, they can face higher volatility during market downturns compared to largecaps. For new investors, systematic investment in mid-cap funds is a prudent way to participate in India’s growth story while maintaining a balanced approach.