sip image.png

Best SIPs To Invest - Top SIP Mutual Funds to Invest in 2025 

kninjaa_money_and_bar_graph_going_up_showing_the_market_is_up_a_bdbcf71d-948a-44aa-9f25-484681a46e27.png

Best Mutual Funds in India in 2025 | Top Performing Mutual Funds in India

medium_image.webp

small_image.webp

thumbnail_image.webp

image.webp

Mutual Fund Screener | Best Mutual Funds to Invest In

There are many points of difference between small-cap and mid-cap funds. Get to know how they compare before investing in them.

Differences Between Small-Cap and Mid-Cap Funds

Home Page

Guides

Mutual Funds

"Differences Between Small-Cap and Mid-Cap Funds"

Pranav Karnad

Steadily grow your wealth via SIPs — get started with Mutual Funds

<p>Diversifying your portfolio with mutual funds? If you can handle more risk, consider small-cap or mid-cap funds for higher growth potential. But first, learn the difference between these options.</p><h2>What are Small-Cap Funds?</h2><p>Small-cap mutual funds invest in publicly traded small-cap companies (i.e., companies ranked from 251st position in terms of decreasing market capitalisation). These companies have exceptional growth potential, but are also highly risky due to higher volatility. Besides small-cap stocks, the fund may also include mid-cap or large-cap stocks, debt and money market instruments in its portfolio.</p><h2>What are Mid-Cap Funds?</h2><p>Mid-cap mutual funds invest mainly in mid-cap companies, ranked 101st to 250th in decreasing market capitalization. A small portion of assets are diversified across small-cap or large-cap stocks, debt securities, and money market instruments.</p>

<h2>
    Summing It All Up
   </h2><p>
    In conclusion, the seven key differences between small-cap and mid-cap funds highlight the unique characteristics and potential benefits of each. Small-cap funds, typically investing in companies with smaller market capitalizations, offer high growth potential but come with increased volatility and risk. On the other hand, mid-cap funds, which invest in medium-sized companies, strike a balance between growth and stability. They offer considerable growth prospects with less volatility compared to small-cap funds. Therefore, the choice between small-cap and mid-cap funds should be based on individual investment goals, risk tolerance, and time horizon. It’s always recommended to diversify your portfolio and consult with a financial advisor before making investment decisions.
   </p><h2>
    Invest Via Fi &amp; Get Hooked on to Commission-free Mutual Funds
   </h2><p>
    Mutual Fund investments on Fi are simple &amp; commission-free. With its intuitive user interface, suited for new &amp; seasoned investors, one can select from over 900 direct Mutual Funds. Plus, Fi is 100% secure as it functions under the guidance of epiFi Wealth, a SEBI-registered investment advisor. To help simplify the steps involved, you can invest daily, weekly, or monthly via automatic payments or SIPs — created with one tap. Moreover, Fi offers 100% flexibility with zero penalties for missed payments.
   </p><h2>
    Frequently Asked Questions
   </h2><h3>
    1. What is the difference between small-cap and mid-cap funds?
   </h3><p>
    A small-cap fund invests in small-cap stocks of listed companies ranked 251st or lower in decreasing market cap. A mid-cap fund invests in mid-cap stocks of companies ranked 101st to 250th.
   </p><h3>
    2. Which is better: small-cap funds or mid-cap funds?
   </h3><p>
    Small-cap funds may have more growth potential than mid-cap funds, but the latter may be a comparatively less risky option.
   </p><h3>
    3. Are small-cap funds risky?
   </h3><p>
    Yes, small-cap funds are typically considered highly risky because their prices are highly volatile and vulnerable to market risks.
   </p><h3>
    4. Should I invest in small-cap funds or mid-cap funds?
   </h3><p>
    That depends entirely on your financial goals and risk profile. If you want to increase the potential for greater capital growth, small-cap funds may be suitable. But if you want a less risky option, mid-cap funds could be a better choice.
   </p>

7 Key Differences Between Small-Cap and Mid-Cap Funds | Fi.Money

Fi.money