ROCKVILLE, Md., April 25, 2011 /PRNewswire/ -- While large-cap stock mutual funds can be expensive to get into, and small-cap stocks are often risky, by the time a small company graduates to a mid-cap stock mutual fund, their management has usually gained valuable experience and their market share is significant. And although no stock is a guaranteed winner – and mid-caps are riskier than large-caps – they can often handle a difficult economic climate and come out the other side in good shape.
However, all mid-caps aren't created equally – and nowhere does that point become more evident than when investors begin conducting their own mutual funds research. As investors read the articles and prospectuses available, many may find that several "mid-cap" stocks are classified as such because their managers buy a mix of large- and small-cap companies – making their funds appear as mid-cap when in reality they aren't.
To help mitigate the issue and find mid-cap funds that are truly mid-cap products, when exploring mutual funds articles and information, investors should look for:
- Funds with "mid-cap" in their names
- Details on what percentage of a fund's holdings are in mid-cap stocks
- Funds made up of companies that have large competitive advantages over others in the marketplace, as they may continue to fare well and out-perform their rivals
- Funds featuring businesses that provide services that won't soon be outdated
To stay up to date on the latest mutual funds research, articles and information, visit http://www.investorplace.com/category/mutual-funds-etfs/mutual-funds/.
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