Many mutual fund investors are worried about the valuations in the mid cap space. Mid cap stocks have witnessed a robust rally in the longer term. Investors made handsome returns on their investments in mid cap funds. That could explain why investors are anxious about their investments. What should investors do?
Before answering that question, let us cover the basics. Mid cap schemes invest in mid cap stocks or in stocks of medium-sized companies. As per Sebi norms, the mid cap mutual funds are mandated to invest in companies that are between 101 and 250 in the market capitalisation. These companies can be leaders of tomorrow. That’s what makes them great bets. If these companies live up to the promise, the market will reward the investors handsomely.
