If you are looking for an investing strategy that has growth potential but is not overly speculative, you might consider looking into midcap funds for your investment portfolio. Here is what Smart Money has to say about midcap funds:
Over the last 15 years midcap offerings have returned an average annual
11.2%. That’s almost a full percentage point ahead of the broad market
and a close second to their smaller brethren, who sit atop the main
fund categories during that time period, according to Lipper.
What are midcap funds?
Funds are generally arranged into three catagories: small, medium and large. Midcap funds fall in the middle area, with a market capitalization of between $1 billion and $10 billion. It is here that you can possibly make an investment strategy to help you out. Large cap funds, while generally safe, exhibit slower growth. And while small cap funds usually outperform the midcap funds, they can be risky, and you might find that you lose more than you gain. Midcap funds offer a happy medium for most investors who want a decent return, but also have a “set it and forget” attitude toward investing. Just make sure you check your investment portfolio every few months to make sure you are still on track.
It is important to remember, though, that any investing strategy carries risk, and that you should carefully research potential investment decisions on your own.