If you are investors with long-term horizons and risk appetite ,investing in mid cap funds is best for you.

Mid Cap funds invest in equity and equity-related instruments of Mid Cap companies. According to the Securities and Exchange Board of India (SEBI), Mid Cap companies are those that are ranked between 101 and 250 in the list of companies according to market capitalization.

Since Mid Cap companies fall between the small-cap and large-cap companies, they offer certain advantages and disadvantages to both of them. These funds usually offer better returns than large-cap funds but are more volatile than them. On the other hand, they are more stable than small-cap funds but tend to offer lesser returns.