Mid cap mutual funds invest in medium-size companies. A middle capitalization mutual fund invests mostly in medium-size companies.
While the definition of “medium-size company” varies, most professionals define it as a company with a market capitalization from $2 billion to $10 billion. Companies you may have heard of within this size range are Eaton Vance, Guess, and others.
In general, mid cap companies are more volatile than large cap companies, and the choice of the right fund managers becomes more important.
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