Skip to Content
The Short Answer

Do You Need a Mid-Cap Fund?

Mid-caps offer great risk/reward potential, but check your existing weightings before buying a dedicated fund.

Mentioned: , , ,

Question: Do I need a mid-cap fund in my portfolio? If so, what percentage of my assets should it be?

Answer: It's not hard to understand the rationale for adding small-cap stocks to a portfolio. In contrast to their larger-cap, more-mature peers, small-cap companies are often more nimble and have greater growth opportunities ahead of them, which can equate to higher long-term returns. But what about companies that fall into the mid-cap squares of the Morningstar Style Box? Do you need to bother with mid-caps at all? 

Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.