First of all, when trying to decide on an investment strategy, you have to first know what you want to achieve in terms of your finances and what level of risk you can take. Growth investors may opt for small-cap stocks, while income and stability seekers will likely favor large-cap stocks. Mid-cap stocks, therefore, can be the middle ground, giving a mix of both.
Diversification is a form of risk management. The diversified portfolio could be composed of large-cap, mid-cap, or small-cap stocks so that an investor derives the unique character of each group while missing less than it otherwis