Mid-Cap Fund

AAA

DEFINITION of 'Mid-Cap Fund'

A type of stock fund that invests in mid-sized companies. A company's size is determined by its market capitalization, with mid-sized firms generally ranging from $2 billion to $10 billion in market cap.

INVESTOPEDIA EXPLAINS 'Mid-Cap Fund'

Most stocks held in a mid-cap fund are firms with established businesses that are still considered developing companies. These funds tend to offer more growth than large-cap stocks and less volatility than the small-cap segment.

The size restrictions for a mid-cap stock fluctuates between funds. The range of $2 billion to $10 billion is only an approximation, and it can change over time.

RELATED TERMS
  1. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  3. Mid Cap

    A company with a market capitalization between $2 and $10 billion, ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Small Cap

    Refers to stocks with a relatively small market capitalization. ...
  6. Flexi-Cap Fund

    A type of mutual or hedge fund that is not restricted to investing ...
Related Articles
  1. Mutual Funds: Does Size Really Matter?
    Mutual Funds & ETFs

    Mutual Funds: Does Size Really Matter?

  2. Which Mutual Fund Market Cap Suits You?
    Mutual Funds & ETFs

    Which Mutual Fund Market Cap Suits You?

  3. Market Capitalization Defined
    Insurance

    Market Capitalization Defined

  4. How To Pick A Good Mutual Fund
    Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center