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If you are looking for high returns and have some surplus money to put aside for a few years, mid-cap mutual funds are best for you. Equity mutual funds invest the collected amount in companies listed in the stock market. The size of these companies depends on their market capitalization. It is defined by the number of shares issued by them multiplied by the value of each share.

Mid-cap mutual funds invest in companies with market capital ranging from Rs. 500 Cr to Rs. 20000 Cr.

Medium-sized companies can give potential capital downfall in the short term but have higher chances of giving high returns in the long term.