Mid Cap Mutual Funds invest in the mid cap companies with higher growth potential, but don’t exhibit risks associated with small caps since these companies have attained certain scale and stability. Mid Cap Mutual Funds offer higher returns than large caps without being risky like small cap funds.
Funds which invest a larger proportion of their corpus in companies with large market capitalization are called large cap funds. Large cap funds are known to offer stable and sustainable returns over a period of time, but might be outperformed by small and mid cap funds, which have higher risk exposure.
Balanced funds, also known as hybrid funds, are a class of mutual funds that contain a bond (debt) component and a stock (equity) component in a specific ratio in a single portfolio. These mutual funds help investors diversify their portfolio by investing in asset classes such as equity and debt.
An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor’s 500 Index (S&P 500). … These funds follow their benchmark index regardless of the state of the markets.