A Mid cap fund is a type of mutual fund scheme that predominantly invests in companies with medium share market capitalization. The `cap' in the

midcap stands for market capitalization which is the total value of the company obtained by multiplying the price of a share and the total number of

shares. Midcap mutual funds invest in companies with a market capitalization in between Rs 500 crores to approximate Rs 10,000 crores. Mid cap

mutual funds and small cap mutual funds are categorised as high risk investments. These mid cap mutual funds usually rise and fall more rapidly than

the Nifty index, large-cap or diversified ( multi cap ) funds. Midcap equity oriented mutual funds invest in a diversified portfolio of stocks and equity

related securities of mid-cap companies.