5 Best Mid Cap Funds to Invest in 2018
Mutual funds are one of the smartest and best investment options available today. It has different categories serving different set of investors. One such promising category which is known for its high returns is mid cap mutual funds. These funds predominantly invest in equity & equity related instruments of mid cap companies (65% of the total assets). Mid cap companies are the compact companies of the equity market which lie somewhere between small caps and large caps. They are ranked 100-250 of the market capitalization.
Points That We Have Covered in This BlogMid 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
- DSP BlackRock Mid Cap Fund (G)
- Kotak Emerging Equity Scheme (G)
- L&T Mid Cap Fund (G)
- ICICI Prudential Mid Cap Fund (G)
- 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:
- Quality of the Portfolio
When investing in a mid cap scheme, the quality of the portfolio it is investing in plays a crucial role. - 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. - 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. - 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 Name | 3-Yrs Return | 5-Yrs Return | ||||
---|---|---|---|---|---|---|
Investment | Growth Value | Annualized Return | Investment | Growth Value | Annualized 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 Name | 3 year risk | 5 year risk | ||||
---|---|---|---|---|---|---|
STDEV | BETA | SHARPE | STDEV | BETA | SHARPE | |
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 |
|
|
---|---|---|---|---|---|---|---|
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 |