As its name suggests, a mid cap stock fund (also known as medium cap) falls between small cap and large cap funds, usually owning shares in companies that have market capitalization between $1 billion and $5 billion. Some business sectors that contain mid cap stocks are utility companies (such as oil, gas, and electric companies), service companies (such as retail chains), and some technology companies. Mid cap fund performance tends to fall between that of small and large companies, too: mid caps face less risk of failure than small cap stocks, but have better earnings potential than large cap stocks.
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