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Mid Cap Stocks and Mutual Funds

Grab mid cap stocks before the market realizes their growth potential. Then practice what you've learned with our free stock market simulation

What are Mid Cap Stocks?

To be considered a mid cap stock, a company's total shares multiplied by their current market share price should fall between $2 and $10 million. This will be their market cap. Mid cap companies are smaller in stature than their blue-chip counterparts but, if picked correctly, could be great growth stocks  and yield high profits. Mid cap stocks are an important component of a properly diversified financial portfolio. They respond faster to changes and innovations in the market because they tend to be more specialized and focused on their own niche.

Investing in smaller companies carries additional risk, but, because of their extreme potential for growth, can seriously pay off. If you can get in on the ground floor of a great company before they make it big, you stand to make a huge return on your investment. However, it can be hard to predict greatness with so many start-ups to choose from today. A happy medium exists for some in the middle range, as moderately sized companies are more established but generally have lower growth prospects. These companies have been around at least a few years and they have a longer track record. It is a bit easier to predict whether or not these companies are going to make it big in the long run, so the risk is smaller and the return not as lucrative. When it comes down to it, smaller competitors who can change dynamically to meet market demands can outperform large companies

Mid Cap Mutual Funds

A midcap mutual fund is a type of stock fund that invests in companies with mid-sized firms generally ranging from $2 billion to $10 billion in market cap.  Most stocks held in a mid cap fund are firms with established businesses - so not exactly small cap - but that are still considered developing companies. These funds arguably present the best of both worlds, as they tend to offer more growth than large cap stocks and less volatility than the small caps.

 

Deciding What to Invest In

You know you are ready and willing to invest. Now it's time to decide in what. Make sure to:

Research ETFs

Find the exchange-traded fund which track the performance of the industry and check out their holdings.

Choose Sectors

Select your stocks based on specific criteria (sector, industry etc.) Use a screener to further sort companies by dividend yield, market cap and other super useful metrics.

Stay Informed

Keep up-to-date. Read stock analysis articles. Read financial news releases. Stay critical.

Types of Investments

Bonds

Bonds, or fixed-income securities, are debt investments in which an investor loans money to an entity, with interest. The borrower borrows the funds for either a fixed or variable period of time.

Mutual Funds

Mutual funds are operated by money managers and should match the investor's objective. They are made up of a bunch of funds collected from many investors and the purpose is to invest in securities like stocks, bonds, etc.

Small-Cap Stocks

Small-cap investors are the risk takers. These small companies have huge potential for growth. However because they are often under-recognized, more research is necessary. This requires the investor to have more time available to properly crunch numbers.

Large-Cap Stocks

Large-cap investors are more conservative these guys like to play it safe. With their steady dividend payouts, these big-cap blue chip companies are as stable as they come

Penny Stocks

Penny stocks are super high risk because of their lack of liquidity. Beginners are often lured in to these stocks because of their crazy low share price. This allows investors to hold thousands of shares for a relatively small amount of invested capital. With a scale like that, the gain of just a few cents per share can translate into major returns.

 

Value Investing

Dividend Stocks

 

SGX Academy

Growth Stocks

 

Mid Cap Stocks

 

Binary Options

 

 
 
 
 
 
 
 
 
 

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