Can an investor with medium risk appetite invest in mid cap mutual funds?

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I have a medium risk appetite. I don’t want to be extremely conservative. Is it a good time to invest in pure mid cap mutual funds?
-Rupa Deb

First, it is always a great time to invest in equity mutual funds to achieve your long-term financial goals. Investing a small sum regularly over a long period is the only way to achieve your long-term financial goals.

However, you should not consider investing in mid cap mutual funds. Mid cap schemes are suitable for investors with a very high risk appetite or with aggressive risk profile. Mid cap schemes can be extremely risky and volatile. Sure, they have the potential to offer superior returns over a long period. However, a medium risk-taker would find it extremely difficult to continue with the investment when there are huge losses. This is the reason why mid cap schemes are recommended to investors with a very high risk tolerance level and stomach for extreme volatility.
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