New Delhi, Sept. 18 -- Mid-cap funds invest predominantly in mid-cap stocks that are often associated with higher growth potential, but they also come with sharper bouts of volatility.

The Nifty Midcap 150, a key benchmark for the mid-cap fund category, has experienced multiple periods of steep declines over the past two decades, including five instances when the index fell more than 20%.

For investors, however, the risk is not limited to seeing their portfolio fall during a correction. Trying to avoid every sharp decline can create another risk: missing the recovery.

A study by Abakkus Mutual Fund, which analysed the Nifty Midcap 150 between April 2005 and August 2026, illustrates how quickly the cost of missing strong market days can...