Have you ever wondered of becoming a crorepati. Some will say yes and some will say no. But what if we tell you that even you can become a crorepati by just investing a mere sum every month. To give you a view of this, a 30 year individual just need to invest only Rs 1775 every month in order to fetch a sum of Rs 1 cr at age 60. So, now most of you will be wondering how this is possible.

This can be possible if an individual invests the above said amount in a midcap mutual fund scheme which is capable of generating 15% CAGR.

So, let's discuss more about midcap funds-

What are mid cap funds?

These funds invest in stocks of those companies which are relatively small in size and are on the growth trajectory. The companies in which these funds invest offer a good upside potential in the stock prices, and that's the reason why these funds outperform.

In the recent reclassification by the market watchdog SEBI, mid cap funds have been defined as those funds which invest atleast 65% of a particular scheme asset in mid cap companies.

Also the regulator has defined mid cap companies as those companies which come in the range of 101th-250th in terms of full market capitalization

What Should Be The Right Approach Of Investing In Midcap Funds?

Though one is allowed to invest either in lumpsum amount or through SIP's. However it is advisable that one should go for SIP's since these funds are very volatile in the short term and SIP is the only remedy available to an investor which can help in riding the volatility with ease.

Hence an investor will be better off if he tries to take exposure in these funds through SIP route and can create huge wealth over a period of long term.

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