For those investing in mid-cap stocks via SIPs, an investment horizon of at least eight years is necessary to ensure capital preservation, based on historical data from 2005 to 2025. Mid-cap funds have shown lower volatility and risks compared to small-cap funds, making a time frame of 8-10 years advisable for consistent positive returns.
Investors in small cap mutual funds should commit to SIPs for at least 10-12 years to mitigate potential losses, as found by Valuemetrics Technologies' analysis. Long-term investments reduce short-term volatility, increasing the chances of positive returns amid fluctuating market conditions.