4 Best Performing Equity Mid-Cap Funds To Invest In 2021

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Investment
oi-Vipul Das

| Published: Wednesday, July 7, 2021, 9:12 [IST]

For investors with an aggressive risk profile having a personal finance goal of at least 5 years, mid-cap funds tend to be the best. These are the equity mutual funds that have their asset allocation across mid-cap stocks or stocks of top-performing mid-sized companies of India. According to the experts, mid-cap funds have the potential to deliver double-digit returns, as the prevailing best performing mid-cap companies may grow to large-cap in the future. Since the last 1-year mid-cap funds have really performed well and have outperformed best performing large-cap funds, as some funds have generated over 50% returns up to 100.20%. By taking this into consideration and not a piece of advice to invest, we have compiled here 4 best performing equity mid cap mutual funds in 2021.

PGIM India Midcap Opportunities Fund Direct-Growth

This fund was launched in November 2013 by PGIM Mutual Fund. PGIM India Midcap Opportunities Fund Direct-Growth returns in the last year were 100.20 per cent, according to Value Research. It has returned an average of 20.17 per cent per year since its inception. The financial, engineering, services, chemicals, and technology sectors account for the majority of the fund’s asset allocation.

ICICI Bank Ltd., NIIT Technologies Ltd., MindTree Ltd., Aarti Industries Ltd., and Federal Bank Ltd. are the fund’s top five holdings. If compared to other mid-cap funds, the fund has an expense ratio of 0.41 per cent, which is quite reasonable. As of 06 July 2021, the NAV of the fund is Rs 40.38 and currently, the fund has an asset under management (AUM) of Rs 1,615 Cr. One can start SIP in this fund with a minimum monthly contribution of Rs 1000. An exit load of 0.5% would be charged if units in excess of 10% of the deposit redeemed within 90 days of the initial date.

Axis Midcap Fund Direct-Growth

In July 2013, this fund was initiated by Axis Mutual Fund. Axis Midcap Direct Plan-Growth has delivered decent returns of 63.25 per cent in the last 1-year. It has returned an average of 20.75 per cent per year since its inception, according to the data of Value Research. The fund has an asset allocation across the Financial, Chemicals, Technology, Consumer Durables, and Services sectors. Cholamandalam Investment & Finance Co. Ltd., Voltas Ltd., Astral Poly Technik Ltd., PI Industries Ltd., and NIIT Technologies Ltd. are the fund’s top five holdings.

The fund’s expense ratio is 0.52 per cent, which is significantly lower than other funds in the same category. The fund’s NAV is Rs 68.55 as of 06 July 2021, and it currently has an asset under management (AUM) of Rs 11,834 Cr. With a minimum monthly investment of Rs 500, one can start a SIP in this fund. If units worth more than 10% of the investment are redeemed within one year of the initial date, an exit load of 1% would be levied by the fund.

Kotak Emerging Equity Fund Direct-Growth

This mid-cap fund was launched by the fund house Kotak Mutual Fund in January 2013. The 1-year returns for Kotak Emerging Equity Fund Direct-Growth are 81.42 per cent. According to Value Research data, it has provided an average yearly return of 21.28 per cent since its inception. The fund has a 0.61 per cent expense ratio and has its asset allocation across the Chemicals, Engineering, Financial, Construction, and Healthcare sectors.

Supreme Industries Ltd., Coromandel International Ltd., Persistent Systems Ltd., The Ramco Cements Ltd., and FAG Bearings India Ltd. are the fund’s top five holdings. Currently, the fund has an Asset Under Management (AUM) of Rs 12,463 Cr and the latest NAV as of July 6, 2021 is Rs 72.56. A SIP in this fund can be started with a minimum monthly investment of Rs 1000. The fund would charge an exit load of 1% if units worth more than 10% of the investment are redeemed within one year of the inception date.

Edelweiss Midcap Fund Direct Plan-Growth

This mid-cap fund was launched by the fund house Edelweiss Mutual Fund in January 2013. According to the data of Value Research, Edelweiss Mid Cap Direct Plan-Growth has generated a return of 86.62% in the last 1-year. It has returned an average of 22.02 per cent per year since its inception. Shriram Transport Finance Co. Ltd., Mphasis Ltd., Jindal Steel & Power Ltd., Odisha Cement Ltd., and JK Cement Ltd. are the fund’s top five holdings.

The fund has a 0.69 per cent expense ratio and a current NAV of Rs 50.31 as of July 6, 2021. The fund has its equity allocation across the Financial, Construction, Chemicals, Engineering, Healthcare sectors. The fund currently has an asset under management (AUM) of Rs 1,359 Cr. With Rs 500 one can start SIP in this fund and the fund would charge an exit load of 1% if units are redeemed within 1 year of inception.

Best Performing Equity Mid Cap Funds In 2021

Here are the best-performing equity mid-cap funds in 2021 based on rating and historical returns.

Funds 1-year returns 3-year returns 5-year returns Rating by Value Research
PGIM India Midcap Opportunities Fund Direct-Growth 100.20% 26.49% 20.83% 5 star
Axis Midcap Fund Direct Growth 63.25% 22.82% 20.76% 5 star
Kotak Emerging Equity Fund Direct Growth 81.42% 21.50% 19.18% 4 star
Edelweiss Midcap Fund Direct Plan Growth 86.62% 20.69% 19.31% 4 star

Should you invest?

For better knowledge for our readers by keeping their financial planning in mind, we always provide a clear view of the average returns of mutual funds. According to the historical returns of equity mid-cap funds, they have generated an average SIP-return of 21.16% in the last 5 years. This return is much lower than the 5-year average SIP return of the best-performing large-cap funds, which means that based on the last 5-year returns, they have outperformed large-cap funds by a huge number.

But this data should not be your only consideration to bet. Investors should and should keep in mind that during the market downturn, mid-cap funds and small-cap funds suffer the most, which means that an investor with a high-risk appetite having an investment horizon of 5-years or more can invest in equity-mid cap funds. But a new investor or an investor with low to moderate risk tolerance can invest or diversify their portfolio with best-performing debt mutual funds, large-cap funds, or arbitrage funds.

Disclaimer

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Story first published: Wednesday, July 7, 2021, 9:12 [IST]

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