Aug 17, 2018 7 min read

5 Best Mid Cap Funds to Invest in 2018

Know about the best mid-cap funds to generate high returns.

Mid Cap mutual funds have faced a relentless uptick till a few months ago. However, the tides have turned, leading to continuing weakness in the mid cap space. This has made investors anxious, and in no time, there were widespread redemptions.

However, when the experts at MySIPonline delve deep into the mid cap territory, we found out that still this segment of mutual funds has a strong potential to attract investors and it would be wrong if we overlook them now. In no time, we made a list of the 5 Best Mid Cap Funds to Invest in india  that our investors can choose to create good wealth.

5 Top Performing Mid Cap Funds

  1. DSP BlackRock Mid Cap Fund (G)
  2. Kotak Emerging Equity Scheme (G)
  3. L&T Mid Cap Fund (G)
  4. ICICI Prudential Mid Cap Fund (G)
  5. Sundaram Mid Cap Fund (G)

But, before starting, let’s first discuss the significant information about the category.

What Are Mid Cap Funds?

Mid cap mutual funds are open-ended schemes that invest in the stocks of companies whose market capitalization ranges from Rs 500 crores to Rs 10,000 crores. The investment in mid cap companies let these 5 best mid cap funds to invest for long term to attract high growth potential, thus leading them to deliver exceptional returns, at times more than diversified equity funds and large-cap funds.

Who Should Invest in Mid Cap Mutual Funds?

Mid cap funds are suitable for investors who:

  • Are looking for faster growth
  • Has a high-risk appetite
  • Need good earnings and steep growth
  • Can handle moderate exposure to volatility.
  • Can stay invested for long.

Four Points to Keep in Mind Before Investing

There are 3-4 interesting points to look at before planning to invest in any mid cap mutual fund scheme. These include:

  1. Quality of the Portfolio
    When investing in a mid cap scheme, the quality of the portfolio it is investing in plays a crucial role.
  2. Look for Clean Mid Cap Funds
    Although after the recent SEBI’s re-categorization, this issue has been sorted out to a great extent, still, before going for a best mid cap fund, one must look for a genuine and true-to-label scheme.
  3. Liquidity & Asset Size
    In a weak market, small companies tend to perform the worse. This leads to several redemptions from the investors’ end. Thus, if a fund size is too large and not liquid enough, it will not be able to sell those positions quickly and will be hit with more losses.
  4. Time Frame
    Considering the worst-case outcome in the case of a best mid cap scheme is also a good thing to do. As per the records of the worst-case outcome of over three years, the chance of getting returns less than 8% in the mid cap fund is 15%, which is nowhere bad. This proves that time is one of the vital factors to check when investing in these 5 best mid cap funds in india.

Is it a Good Time to Invest in Mid Caps?

It’s the time when mid cap funds are covered with a cloud of uncertainty. However, some wise investors prefer seizing the right opportunity and buying when everyone else is selling. Considering the points of experts, it can be said that in the near term, the market for the mid caps may move sideways, but if we consider the long-term perspective, then it is definite that these 5 best mid cap funds in 2018 will regain momentum.

Thus, the investors who are daring to take the risk now by investing in these 5 Best Mid Cap Funds in india blog will find their portfolio in a much better position than those investing in large-cap funds. People who already have invested in 5 best mid cap funds for long term can exit the non-performers and start afresh with funds with a good track record and quality fund management.

Top Mid Cap Funds for Wealth Creation

Returns Analysis:

After analyzing the past 5 year’s returns of the 5 best mid cap funds to invest for long term

Scheme Name3-Yrs Return5-Yrs Return
InvestmentGrowth ValueAnnualized ReturnInvestmentGrowth ValueAnnualized Return
Benchmark: S&P BSE Mid Cap 100000 141330 13.54% 100000 293790 26.30%
DSP BlackRock Mid Cap Fund (G) 100000 144369 12.70% 100000 357362 29.86%
Kotak Emerging Equity Scheme (G) 100000 142751 12.57% 100000 372057 30.79%
L&T Mid Cap Fund (G) 100000 152727 14.79% 100000 387881 31.54%
ICICI Prudential Mid Cap Fund (G) 100000 129413 9.00% 100000 360007 29.25%
Sundaram Mid Cap Fund (G) 100000 134232 10.30% 100000 238701 28.32%
Returns: As on July 31, 2018

Risk Parameters:

Scheme Name3 year risk5 year risk
STDEVBETASHARPESTDEVBETASHARPE
Benchmark: S&P BSE Mid Cap 16.46% 1.000 0.65 16.83% 1.00 1.18
DSP BlackRock Mid Cap Fund (G) 17.70% 1 0.58 19.10% 1.07 1.21
Kotak Emerging Equity Scheme (G) 15.69% 0.92 0.63 16.70% 0.94 1.41
L&T Mid Cap Fund (G) 14.87% 0.98 0.46 14.87% 0.99 1.01
ICICI Prudential Mid Cap Fund (G) 15.99% 0.9 0.42 17.31% 0.94 1.33
Sundaram Mid Cap Fund (G) 16.94% 0.98 1.23 17.77% 0.94 1.33
Risk: As on July 31, 2018

On a Final Note

We hope you are now clear about this category of equity mutual funds and know that how investing in them can help you earn a whopping profit of more than 15%. To start investment, you can prefer any mode, be it SIP or lump sum. This decision, too, depends on your investment objective, risk appetite, and time horizon. To seek experts guidance on anything related to investment in these 5 best mid cap mutual funds online in india , connect with us at MySIPonline, and we assure to offer a sure-shot solution.

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Also Read:

Willing to know about the best small cap mutual funds to invest in 2018 as well? Read our latest write-up from our research team who after all filtration has came up with these top performing Small Cap Funds: Top Small Cap  Funds to invest in 2018

To ensure your money is in safe hands, it’s always recommended to seek advice of the people who are adept with the ins and outs of this field. Here, after timely and in-depth research, we, the experts at MySIPonline, have come up with a video on the best small cap funds:
Watch Video : https://www.youtube.com/watch?v=LoO3L6jbYB4.

It will help you in selecting the best performing mutual funds from Small Cap Category. Further, if you are a conservative investor, then read Top 5 Best Large Cap Funds for 10 Years  which entails all information about the best Large Cap Funds of 2018.

Best Funds

Top funds 1M Return 6M Return 1Y Return 3Y Return 5Y Return
  • 1M Return
  • 6M Return
  • 1Y Return
  • 3Y Return
  • 5Y Return
ICICI Prudential MidCap Fund - Growth 0.27% 22.8% 53.85% 24.56% 27.57% Invest
DSP Midcap Fund - Regular Plan - Growth 1.75% 28.01% 45.11% 19.51% 24.22% Invest
Kotak Emerging Equity Scheme - Growth 1.25% 30.52% 47.7% 25.35% 30.15% Invest
Sundaram Mid Cap Fund Regular Plan - Growth 3.73% 26.72% 55.76% 27.09% 26.9% Invest
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