Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,086.70114.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Can an investor with medium risk appetite invest in mid cap mutual funds?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Nov 15, 2019, 12.38 PM IST
0Comments
Getty Images
Investing 12
I have a medium risk appetite. I don’t want to be extremely conservative. Is it a good time to invest in pure mid cap mutual funds?
-Rupa Deb

First, it is always a great time to invest in equity mutual funds to achieve your long-term financial goals. Investing a small sum regularly over a long period is the only way to achieve your long-term financial goals.

However, you should not consider investing in mid cap mutual funds. Mid cap schemes are suitable for investors with a very high risk appetite or with aggressive risk profile. Mid cap schemes can be extremely risky and volatile. Sure, they have the potential to offer superior returns over a long period. However, a medium risk-taker would find it extremely difficult to continue with the investment when there are huge losses. This is the reason why mid cap schemes are recommended to investors with a very high risk tolerance level and stomach for extreme volatility.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

Also Read

Mid cap mutual funds

5 things to know before investing in large & mid cap mutual funds

5 things to know before investing in large & mid cap mutual funds

Best small and mid cap mutual fund managers 2019

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service