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A mid-cap mutual fund might be a better choice for investors who prefer high returns and want to invest for several years. Equity mutual funds invest collected funds in stocks. The market capitalization of these companies is determined by the number of shares that they have issued multiplied by the price of each share.

Investments in mid-cap mutual funds are typically made in companies that have a market capitalization of Rs. 5000 to Rs. 20000.

Larger companies have lower chances of capital loss in the short term but will have higher returns over time.