While large cap funds invest in financially stable and well-established companies and small cap funds predominantly invest in companies with small market capitalization, mid cap funds are open ended equity schemes that invest a majority of their investible corpus in mid cap company stocks. Axis Mid Cap Fund is an open ended equity scheme predominantly investing in mid cap stocks. The investment objective of this mutual fund scheme is to achieve long term capital appreciation by investing predominantly in equity and equity related instruments of mid cap companies.

Axis Mid Cap Fund might prove to be a good mutual fund investment option as this scheme has the potential to offer risk adjusted returns over the long term by predominantly investing in equity and equity related instruments of mid cap companies. Axis Mid Cap Fund may give investors and opportunity to create long term wealth however, they may need to have a long term investment horizon spanning over five years or more so that this mid cap fund is able to perform and generate decent capital appreciation. Also, only investors who carry a very high risk appetite should consider investing in Axis Mid Cap Fund. One may consider investing in Axis Mid Cap Fund for the long term and target their life’s financial goals like retirement planning, securing their child’s financial future, building a marriage corpus for their child, etc.

Axis Mid Cap Fund works pretty much like any other equity mutual fund scheme. The fund invests a majority of its investible corpus in equity and equity related instruments of companies with medium market capitalization. The scheme may invest the remaining corpus in other equity related instruments in quantum with the scheme’s investment objective.  The Asset Management Company running a mid cap fund collects money from investors sharing a common investment objective and the fund manager invests this accumulated sum across mid cap companies. In exchange, the investors receive units in accordance with the scheme’s existing Net Asset Value (NAV). The NAV of the scheme may vary based on the mid cap scheme’s overall performance. Axis Mid Cap Fund invests in stocks of mid cap companies that have growth potential and can offer long term earnings to investors.

Here are the benefits of investing in Axis Mid Cap Fund:

• The mid cap mutual fund invests predominantly in midcap companies.
• Midcap companies have the potential to deliver superior returns due to the potential of faster earnings growth. Having said that, such companies are emerging companies, and hence it is crucial to be vigilant about their business and growth prospects and hence carry risk.
• Axis Mid Cap Fund has an actively managed portfolio diversified across sectors for keeping the risk well managed.
• This scheme allows you to complement your portfolio focusing on large cap companies.
• By investing in equity, this mid cap fund provides asset class benefits. Equity as an asset class holds the potential to beat inflation and generate long term wealth.
• Investing in a scheme may allow investors to target long-term goals such as children's education & their future, retirement, or any other long term growth that needs a wealth creation plan.

Equity mutual funds can be largely categorized based on market cap. Large cap, mid cap and small cap funds are the different types of equity funds each of whom tap into companies belonging to specific market capitalization. Axis Mid Cap Fund is an equity mutual fund that specifically targets credible stocks of companies with medium market capitalization. This equity fund is different than a large cap, small cap, or multi cap fund each of which possesses unique traits.