Best mid cap mutual funds to invest in 2020

Here is our monthly update on the mid cap mutual fund recommendation list for June. Before proceeding further, a word about the current volatility in the market. As you know, Covid-19 pandemic has created an unique situation in the market and nobody knows for sure how the world is going to tackle the virus threat or when the economy would bounce back. You should be extremely cautious about your finances and investments during this period.

This doesn't mean that you should abandon your investments. It is imperative to continue with your investments to benefit from the market crash. However, you should reassess your financial situation and take all necessary steps to safeguard against a health emergency or salary cut or job loss.

Coming back to our recommendation list, there are no changes in the list this month. That means, if you have invested in these mid cap schemes, you may continue with your investments in them and make fresh allocations to them.

As said in the update in March, we are closely watching the performance of HDFC Mid-Cap Opportunities Fund. As per our methodology, the scheme has been in the last quartile for over six months now. We will continue to watch the performance of the scheme and update you about your plan of action.

If you are new to these recommendations, here are a few things you should understand before considering to invest in mid cap mutual funds to meet your long-term financial goals. Mid cap mutual funds invest mostly in mid cap stocks or stocks of mid-sized companies. These companies could become a successful large company. If that happens, you will make money.

However, many mid-sized companies never fulfill their promise. In fact, many of them get into trouble because of dubious management ..

This is the reason why mid cap stocks are considered extremely risky and volatile. That is the reason why these schemes are recommended only to investors with very large appetite and ability to tolerate volatility. Advisors also say investors should invest in mid cap schemes only if they have a very long horizon.

If you are a new mutual fund investor, you should avoid investing in mid cap schemes. Start with relatively safer large cap mutual funds, gain some experience before venturing  ..

Finally, if you have a very high risk appetite and can invest for a long-term horizon of seven to 10 years, you can invest in mid cap mutual fund schemes. We have handpicked five mid cap equity mutual fund schemes that you may consider to invest to achieve your long-term financial goals.

Best mid cap mutual fund schemes to invest in 2020

• L&T Midcap Fund
• HDFC Mid-Cap Opportunities Fund
• DSP Midcap Fund
• Invesco India Midcap ..
• DSP Midcap direct plan Growth.
• Axis Midcap Fund Growth