Mid Cap Stocks Compare

Additional Useful Information

• An investor can buy “Shares” of these stocks. These shares can be purchased at a price which is called the “Share Price”. The price of these shares keeps changing daily.

• The investor can sell these shares anytime at the share price prevailing on the day of the sale.

• Total Purchase Amount	=	Number of Units X NAV as on the day of purchase
  Total Sale Amount	=	Number of Units X NAV as on the day of sale
  Total Gain	=	Total Sale Amount – Total Purchase Amount

• Mid Cap Stocks are considered a good investment option over the long term (more than 5 years).

Returns *

• Mid Cap Stocks do not guarantee any returns. They are subject to market risks.

• Investment in mid cap stocks can generate returns for the investors in two forms -
• The first source - When investors sell their securities, the difference between the Sale Amount and Purchase Amount is typically called “Capital Gain” or “Capital Loss” (if sale amount is lesser than the purchase amount).
• The second source - Dividend payments.

• Mid Cap Stocks have the potential to generate above average returns over a long holding period.

• Returns depend on and vary between individual stocks and can be potentially higher than Large Cap Stocks.

Risk Level

• Mid Cap Stocks are categorized as high-risk investments since they invest in the equity stock market.

• They are less risky as compared to Small Cap Stocks however, they are riskier as compared to Large Cap Stocks.

Liquidity

• When an investor sells shares of these stocks, the sale amount will be paid to the investor in 2 working days.

• Relatively less liquid as compared to large cap stocks.

Interesting Facts

• Mid Cap Stocks are companies between the top 100 to 250 companies based on their Market Capitalization.

• Mid Cap Stocks typically have a lesser price fluctuation as compared to Small Cap Stocks, but not as much as Large Cap Stocks.

Tax Implications

• Earnings received from Mid Cap Stocks are taxable.

• When investors sell their Mid Cap Stock Shares, the difference between the Sale Amount and Purchase Amount is typically called “Capital Gain” or “Capital Loss” (if sale amount is lesser than the purchase amount).

• The tax that the investor must pay on Capital Gain is –
• Situation 1 – If the Mid Cap Stocks are sold within a period of 2 years from investment, the Capital Gains earned (called Short Term Capital Gains) are taxed at 20% of the gain.
• Situation 2 - If the Mid Cap Stocks are sold after a period of 2 years from investment, the Capital Gains earned (called Long Term Capital Gains) are taxed at 12.5% of the gain.

• There is no tax in case of “Capital Loss”.

• For any dividend received by investors from Mid Cap Stocks, these amounts are added to their total taxable income and tax is required to be paid as per the tax slab.

Where To Invest

• Best Mid Cap Stocks to Buy for Long Term in India 2023 (groww.in)

• Mid Cap Stocks: Best Mid Cap Stocks to Buy Today | 5paisa