As per the latest June mutual funds report by AMFI, traction in mutual fund is on the rise and there has been seen increased interest for mid cap fund category. Now if you even want to go by the current trend and follow the market sentiment, here are some top rated and top performing mid cap funds for you to add to your investment portfolio. But before that we will provide you with various important aspects around them.
What are Mid-cap mutual funds?
These equity mutual funds invest in mid-sized companies which rank between 101 and 250 on the basis of market capitalization, while the risk in them is low these funds offer better growth potential. As per the SEBI mandate, these funds invest these funds are required to put a minimum of 65 percent of the corpus in equity and equity related securities of mid-cap companies.
Fund managers invest in them even on the premise that some of these mid-cap companies have the potential to grow into large cap over time also.
Points to note when investing in mid-cap funds
1. Your investment horizon should be pretty high say between 7-10 years as there may be sharp falls also in this segment.
2. It is to be also pointed that investors should not only invest in the category of mid cap funds in the assumption of getting a higher return as seen in the past one year. Thus one needs to be mindful of the risk aspect of these funds.
3. For better fund picking, pick the fund that has delivered consistent returns over the period of 1-5 years.
4. Risk on the fund can be known or reduced if the fund has bets diversified across sectors.
5. Further, go for mid-caps of fund house which have been into existence for long and have a substantial AUM.
Top Rated Mid-cap funds that delivered consistent returns over 1-5 years
|Mid cap fund||Rating||AUM||1 year return %||3 year return %||5 year return %|
|Kotak Emerging Equity- Direct||CRISIL 4-Star rated||Rs. 12463 crore||81%||21%||19%|
|PGIM India Midcap Opportunities Fund – Direct Plan – Growth:|
|CRISIL -5 star rated||Rs. 1615.39 crore||98.92%||26.77%||21.02%|
|Axis Midcap Fund-Growth||CRISIL 4-Star rated||Rs. 11834 crore||61%||21%||19.4%|
1. Kotak Emerging Equity- Growth:
The mid-cap fund from the house of Kotal mutual fund commands an NAV of 72.34. This fund is an 8 year old fund and benchmark of the fund is Nifty Midcap 100 TRI. Expense ratio of the fund is 0.61 percent. Return grade from the fund has been also above average.
The fund has major investment into sectors including financials, engineering, chemicals, construction and healthcare etc.
Top holdings of the fund include Supreme Industries, Coromandel International, Persistent Systems, The Ramco Cements, Thermax etc.
2. PGIM India Midcap Opportunities Fund – Direct Plan – Growth:
This is a CRISIL 5-star rated fund which has outperformed the benchmark with higher return of 99% over the 1 -year period. The fund was introduced in the year 2013 and carries an expense ratio of 0.41% i.e. sharply lower than the category average expenses.
Top 10 stocks in the portfolio of the fund include Coforge, Mindtree, Aarti Industries, Federal Bank, Sanofi India etc.
Minimum SIP investment in the fund can be made from Rs. 1000. Also, in case of early redemption within a span of 90 days, there shall be charged 0.5% exit load for units more than 10% of the investment. Rs. 3.6 lakh investment in the fund via SIP route over the 3-year period is now valued at Rs. 6.94 lakh.
3. Axis Midcap Fund-Growth:
Of all the fund this mid cap fund from the Axis Mutual funds has offered the highest 5-year return. Value Research has accorded the fund a 5-star rating. The fund’s NAV as on July 8 is 61.76. SIP in the fund can be started or Rs. 500 and for lump sum one needs to put in a minimum of Rs. 5000 into the scheme.
This is a 10 year old fund with the benchmark S&P BSE Midcap TRI. The fund has been classified as carrying a high risk.
Top stock holdings of the fund include Voltas, Cholamandalam Investment & Finance, Astral Poly, PI Industries, Coforge, ICICI Bank etc.
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