Investing in mid-cap and large-cap companies means buying shares in companies of different sizes based on their market capitalization. Mid-cap companies typically have a market capitalization between $2 billion and $10 billion, while large-cap companies have a market capitalization exceeding $10 billion.

Mid-Cap Companies

• Mid-cap stocks offer a balance between growth potential and stability. They tend to grow earnings faster than large caps but are more volatile.
• These companies often have room to grow and may become large-cap companies in the future.
• They may also attract acquisition interest from larger companies, providing additional upside for investors.

Large-Cap Companies

• Large-cap stocks are well-established industry leaders with substantial market presence and financial strength.
• They are generally less volatile and considered safer investments compared to smaller companies.
• Large caps often pay dividends, providing regular income to investors.
• These companies tend to be more resilient during economic downturns and offer liquidity and accessibility in the market.

Investing in both mid-cap and large-cap stocks allows investors to diversify between growth opportunities and stability within their portfolio.