Mid Cap SIP Calculator

Mid cap funds invest at least 65% of assets in companies ranked 101-250 by market cap. These are mid-sized companies that are growing rapidly - think companies like Trent, Voltas, Mphasis, or Crompton. They offer higher growth potential than large caps but with more volatility.

Mid cap funds have historically delivered 13-17% CAGR over 10+ year periods in India, outperforming large caps significantly. However, they are more volatile - they can fall 50-60% in severe corrections (2008, 2020) and take longer to recover. The higher return is compensation for this additional risk.

A common allocation: 50% large cap / index fund + 30% mid cap + 20% flexi cap or small cap. This balances growth potential with stability. Aggressive investors may go 40% mid cap, but only if they have a 10+ year horizon and can tolerate significant temporary losses.

Avoid mid cap funds if you need the money within 5 years, have low risk tolerance, or are investing your emergency fund. Mid cap corrections can be severe and recovery can take 2-4 years. They are not suitable as your only equity investment.