I have about 20% of my mutual fund portfolio in one mid-cap fund . Apart from this, I have three large-cap funds and one gold exchange-traded fund. I want to exit the latter as it was an ill-advised purchase. I invest in one of the large-cap funds through SIP; others as lump sum. Would it be appropriate to have another mid-cap fund?
—Lalima Bhandari
The performances of mid-cap funds are largely dependent on the ability of a fund manager to make astute, well-timed stock picks in the market. Due to this subjective factor, the variance between one fund and another in this category could be quite large.
