Mid-cap schemes have outperformed other diversified equity funds categories over last one year. Mid-cap funds are diversified equity schemes that invest minimum 65 percent of money into mid-cap stocks - 101st to 250th company in terms of full market capitalisation. Mid-cap stocks are usually large businesses and post decent growth. Many aggressive growth seeking individuals invest in these schemes. Mid-cap funds allocate some money to large-cap stocks as well to maintain liquidity.