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. Fund Category

    A way of differentiating mutual funds according to their investment ...
  2. Large Cap - Big Cap

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

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

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

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

    Refers to stocks with a relatively small market capitalization. ...
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. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center