The long-running outsized returns delivered by this market-cap segment have attracted considerable attention, and many wonder if it’s too late to add exposure to smaller stocks. Small-cap stocks are primed to outperform large caps over the next 10 years. One of those classes is mid-cap stocks. The most famous research comes compliments of Ken French and Eugene Fama. Small-cap stocks are considered good investments due to their low valuations and potential to grow into big-cap stocks, but the definition of a small-cap … Additionally, the fund tracks the S&P Small-Cap 600 Index but cherry-picks its holdings. Mid-cap stocks, which range from a capitalization of about $1.6 to $6.8 billion, are often overlooked because investors place emphasis on large or small caps, investing experts say. With more than 3,000 stocks in its portfolio, this is really a “smid-cap” (small-cap plus mid-cap… Background: The value and small-cap factors 1926-2019. Actually, Fama’s contributions to the Econ/Finance field were so substantial that he was one of the 2013 Economics Nobel Prize winners. Mid-caps, often referred to as "Goldilocks" stocks, offer a 1-2 punch of financial stability you don't get from small caps, but also greater growth potential than many large caps. And if you want mid-cap stocks, then just buy a mid-cap index. Mid Cap : 101st to 250th company in terms of full market capitalization c. Small Cap: 251st company onwards in terms of full market capitalization Large Cap: 1st to 100th company in terms of full market capitalization b. Mid caps also lag small caps when rates go down. The price/earnings ratio of the average small-cap growth fund is 28.3, vs. 19.8 for small-cap value funds. SEBI has defined Large Cap, Mid Cap and Small Cap as shown below: a. "If $10,000 were invested at these rates, at the end of 20 years in a large-cap fund you would have $63,700 versus $100,000 is a small-cap fund, or 57% more money." 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