Mid Cap stocks refer to the stocks of companies with a market cap in the range of $2 billion to $10 billion. These companies fall in between small-cap and large-cap companies. These companies are expected to grow, increase profits, market share, and productivity. They lie in the middle of the growth curve. These stocks are beneficial for portfolio diversification as they provide a balance of growth as well as stability.
Investors prefer including mid-cap stocks in their portfolio because of the following reasons:
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