Category Archives: Mutual Fund

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. Let us talk about the flagship product – UTI Equity Savings Fund.  https://www.youtube.com/watch?v=44SZNc03zBM UTI Equity Savings Fund  Investment Objective The investment objective of the Scheme is to provide capital appreciation and income distribution to the investors using arbitrage opportunities, investment in equity/equity-related instruments, and debt/money market instruments.   Investment Process   For Equity Investments: Sector selection combines top-down and bottom-up approaches going through short-term challenges and trading below long-term averages. Stock selection mainly involves Stocks trading at a deep discount to their intrinsic value and with signs of value unlocking. The focus lies mainly on stocks below their long-term averages or when it is cheap relative to market aggregates. Arbitrage opportunities arising out of mispricing in cash & future market. Opportunities that can provide regular accruals.  For Debt Investments: Debt portfolio is based on accrual strategy, focus on good credit quality, focus on low duration, tactical allocation on G-sec based on in-house view. Portfolio Composition  As a hybrid fund, the funds are allocated to equity, long-term debts, government securities, and non-current assets. The equity fund allocated 96.2% to large-cap funds, 3.8% to mid-cap. Note: Data as of 30th June 2023.Source: UTIMF Top 5 Active Stock Positions  Name Sector  % HDFC Bank Ltd. Banking 3.1% Infosys Ltd IT 2.9% ICICI Bank Ltd Banking 2.4% Larsen & Toubro Ltd Construction 2.1% ITC Ltd FMCG 1.9% Note: Data as of 30th June. 2023. Source: UTIMF  Performance Since Inception Note: Fund performance since launch; Inception Date – 30th Aug. 2018. Source: UTIMF Invest In Fund Fund Manager  Mr. V. Srivatsa is an Executive Vice President & Fund Manager –Equity at UTI AMC Ltd. He is a B. Com graduate, C.A., CWA, and has a PGDM from IIM, Indore. He has been with UTI AMC since 2002. Before joining UTI, he worked with Ford, Rhodes Parks & Co., Chartered Accountants for two years, and as Officer-Audit in Madras Cements Ltd. He started in the securities research department at UTI AMC, covering varied sectors such as Information Technology, Capital goods, and metals. He was promoted as fund manager offshore in December 2005 after a three-year stint in the DOSR. He was given additional responsibilities for the equity portion of hybrid funds in October 2009. He reports to the Head – Of equities for both the domestic & hybrid equity schemes.  Mr. Sunil Patil is Executive Vice President & Fund Manager – Debt. He joined UTI AMC in October 1989. He has 28 years of experience in Primary Market Investment / dealing and Fund Management.  Who Should Invest?  Investors looking for overall portfolio diversification.  Investors who want growth with limited downside risk to their portfolio  Investors looking for tax-efficient returns  Retirees looking for moderate and stable returns with low volatility  First-time investors to the Mutual Fund  Why Invest?  Diversified portfolio construct that limits the volatility   Aims to create long-term wealth creation by investing in companies that generate economic value   Portfolio management within well-defined investment philosophy & investment process Around 27 years of Performance track record  Tax efficiency due to equity taxation   Competitive expense structure   Ideal Time Horizon  Ideal for investors with a time horizon of three years and above.   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The equity portion of the fund's portfolio is managed actively with both top-down and bottom-up stock-picking approaches. In contrast, the debt portion is managed with a focus on good credit quality and low duration. The fund has underperformed the benchmark since its inception. Hence, investors should remain invested long-term to witness alpha generation. 

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space. ICICI Prudential Mutual Fund offers products across asset classes. ICICI Prudential Banking and Financial Fund  Investment Objective The scheme's primary objective is to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity-related securities of companies engaged in banking and financial services.  Investment Process   Portfolio construction: The scheme will invest a minimum of 80% of its total assets in stocks of companies engaged in the banking and financial services sector, including banking, broking, asset management, wealth management, insurance, non-banking financial companies (NBFC), and other companies that may be engaged in providing financial services.  Benchmark agnostic: While the Scheme’s performance is benchmarked against Nifty Financial Services TRI, it may opportunistically invest in companies outside the same.   Investment Approach: The scheme invests across market capitalizations and uses a combination of growth and blend investment style.  Portfolio Composition  As per its investment objective, the equity exposure is significant to stocks of companies engaged in the banking and financial services sector. The funds are invested primarily in large-cap companies with approximately 81% exposure to large-cap stocks, approximately 15% to mid-cap stocks, and the remaining 4% to small-cap stocks. Note: Data as of 31st May. 2023. Source: ICICI Pru AMC, Value Research  Top 5 Holdings for ICICI Prudential Banking and Financial Fund Name Sector Weightage % HDFC Bank Ltd. Bank 17.41 ICICI Bank Ltd. Bank 17.16 State Bank of India Ltd. Bank 9.34 Axis Bank Ltd. Bank 8.09 HDFC Ltd. Finance 5.3 Note: Data as of 31st May 2023. Source: ICICI Pru AMC Performance Since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs 95,580. Note: Fund performance since launch; Inception Date – 22nd August 2008.  Source: icicipruamc.com The fund has performed consistently and has generated an annualized return of 16.4% since inception. It has outperformed its benchmark except for the five-year period.  Invest in the fund Fund Manager  The fund is ably managed by Roshan Chutkey, who has over 12 years of experience and manages five funds.  Who Should Invest in ICICI Prudential Banking and Financial Fund?  This scheme is suitable for investors who aim to invest predominantly in companies engaged in banking and financial service and achieve goals like tactical solutions and wealth creation.  Why Invest in ICICI Prudential Banking and Financial Fund?  The banking and financial services sector proxies India's growing economy since every aspect of the economy is influenced by it.   It allows investors to invest in companies engaged in the banking and financial services sector across all market caps.   Time Horizon  One should look at investing for a minimum of five years or more.  Investment through Systematic Investment Plan (SIP) may help tackle broader equity market volatility.  Conclusion  The scheme provides access to well-researched companies engaged in the banking and financial sectors that provide a higher return potential. This allows investors to have exposure to one of the most critical sectors that play a crucial role in the development of any economy. Also, the fund has consistently outperformed its benchmark except over five years. Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk through exposure to the banking and financial sector can consider this fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. DSP Global Innovation Fund of Fund This is an International Fund of Funds, FoFs (Overseas/ Domestic) fund with MSCI ACWI Net Total Return as its benchmark. It was launched in February 2022 and had an AUM of more than Rs. 501 crores as on May 31, 2023. The risk level for this fund is categorized as Very High Risk.  Investment objective  The primary investment objective of the scheme is to seek capital appreciation by investing in global mutual fund schemes and ETFs that primarily invest in companies with innovation themes having the potential for higher revenue and earnings growth. The scheme may also occasionally invest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP Mutual Fund to meet liquidity requirements.  Investment process  DSP Global Innovation Fund Fund invests globally in the innovation theme via companies that are either market-leading dominators, game-changing disruptors, or connecting enablers through a mix of different investing styles, market-caps & fund managers.  It does this by investing in international funds across the active & passive space, which in turn invests in companies across multiple innovation themes and sectors such as Biotech, Aerospace & Defence, Fintech, E-Commerce, Mobility, Internet & interactive media, Semiconductors, and more.  Portfolio Composition  The fund had invested approximately 97% of the assets in equity, and the remaining were held in cash and cash equivalents.   Note: Data as of May 31, 2023. Source: DSP MF Performance:  If you had invested Rs.10,000 at the fund's inception, it would now be valued at Rs 10,355. Note: Data as of May 31, 2023. Source: DSP MF The fund has given a return of 15.04% in one year and has generated a CAGR (Compounded Annual Growth Rate) of 2.74% since inception. Since the fund was launched just a year ago, investors should remain invested long-term to witness wealth creation. Invest in the Fund Fund Manager Jay Kothari  Jay Kothari, Vice President & Product Strategist -Jay has been with DSP Mutual Funds since May 2005 and has been with the Investment function since January 2011. Jay joined the firm as a Sales team (Banking) member in May 2005. Before joining DSPAM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University and an MBA in Finance from Mumbai University.  Kedar Karnik  Kedar joined DSP Mutual Funds from Axis Asset Management and has over 17 years of investment experience. He has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has over a decade of investment experience. He has previously worked with HSBC Asset Management and CRISIL Ltd.  Who Should Invest in the DSP Global Innovation Fund of Fund?  Consider this fund if you:  Are you an experienced Indian investor with a well-set core portfolio, looking to diversify no more than 10-15% of your portfolio internationally?  Love the theme of innovation & its investment potential and recognize that the future is powered by those focused on re-imagining the world.  Value international diversification & want to hedge your bets.  Have the patience and mental resilience to remain invested for a decade or more.  Do not always chase the highest possible returns.  Why Invest in this Fund?  To participate in cutting-edge next-gen themes like Artificial Intelligence, Machine Learning, Robotics, Cloud Infrastructure, Social Media, OTT, Digital Transformation & more.  To own companies that have demonstrated higher growth & also have higher earning growth expectations.   To get access to international companies that may be difficult for Indian investors to invest in directly- especially since major innovations have happened outside India.  Time Horizon:  One should look at investing for at least ten years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion The DSP Global Innovation Fund of Fund gives investors exposure to international companies engaged in the technology sector. Thus, it is the best option for investors seeking long-term capital growth and investment in units of overseas funds that invest primarily in equity and equity-related securities of technology companies with high risks. Investors need to stay invested long-term to reduce volatility and witness the benefits of compounding. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Incorporated on December 10, 1999, HDFC Asset Management Company Ltd. is among India's most popular fund houses. HDFC Mutual Fund launched its first scheme in July 2000, and ever since it has been ambitious about offering a stable performance of funds across all the variants of schemes it offers. The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC AMC) Limited. HDFC Trustee Company Limited is the trustee of the mutual fund. The HDFC Mutual Fund is sponsored by the Housing Development Finance Corporation Limited (HDFC Ltd.) and Standard Life Investments Limited. HDFC Capital Builder Value Fund  Investment objective The scheme aims to achieve capital appreciation/income in the long term by primarily investing in undervalued stocks.   Investment process   Undervalued stocks are generally those that are trading at prices below their intrinsic value as measured by potential earnings or asset values and/or future cash flow growth.  The scheme endeavors to maintain a minimum of 60 % of the portfolio in companies that are trading at multiples lower than the Median P/E (Price/Earnings) or Median P/B (Price/Book Value) of the NIFTY 500 Index or below the five-year historical average of own trailing P/E or P/B.  Portfolio composition  The portfolio holds significant exposure in equity & equity-related instruments at 99.19%, and significant sectoral exposure is to Banks, which account for roughly 29.37% of the portfolio. The top 5 sectors hold more than half of the portfolio. Note: Data as of May 31, 2023. Source: HDFC MF Top 5 Holdings for HDFC Capital Builder Value Fund Name Weightage % ICICI Bank Ltd. 9.70 HDFC Bank Ltd. 9.07 Infosys Ltd. 6.82 Axis Bank Ltd. 5.11 Bharti Airtel Ltd.  4.66 Note: Data as of May 31, 2023. Source: HDFC MF   Performance   This Fund Nifty 500 TRI Nifty 50 TRI   CAGR CAGR CAGR 1 Year 14.46% 12.74% 12.94% 3 Years 28.03% 27.61% 26.02% 5 Years 9.58% 12.35% 12.89% 10 Years 14.92% 14.19% 13.33% Since Inception 13.97% NA 10.90% Note: Data for Regular Plan as on May 31, 2023. Source: HDFC MF  Invest in Funds Fund Manager  Mr. Gopal Agarwal (Since December 10, 2021) has over 19 years of experience in Fund Management and 2.5 years in Equity Research. Before HDFC AMC, he worked at DSP Investment Managers Private Limited, TATA Asset Management Company Limited, and Mirae Asset Global Investments (India) Pvt. Ltd.   Who Should Invest in HDFC Capital Builder Fund?  This scheme is suitable for investors who  Intend to invest in undervalued companies.  Would like to invest in a diversified portfolio with a long-term horizon.  Want twin benefit of earnings growth as well as re-rating of valuation multiples.  Are looking for a sound and disciplined approach to investing in volatile times.  Why Invest in this Fund?  The fund follows a diversified multi-cap strategy with a value bias.  There is an emphasis on investing in undervalued stocks with a reasonable margin of safety.  Investors with long-term horizons can benefit not only from earnings growth but also from the re-rating of multiples.  The fund is an actively managed diversified equity portfolio that invests across sectors without a market cap bias.  Time Horizon  One should look at investing for at least 3-4 years or even more.  The fund is open-ended. One can invest any time in this fund.  Conclusion  The HDFC Capital Builder Fund has outperformed both benchmarks consistently except for a five-year period. With an Asset Under Management of ₹5,534.27 Cr as on May 31, 2023, it is one of the largest funds in the value category. Therefore, the fund is suitable for investors looking for long-term wealth creation with an understanding of high risk. However, investors must remain invested for a long-time horizon to witness wealth creation.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Incorporated on December 10, 1999, HDFC Asset Management Company Ltd. is among India's most popular fund houses. HDFC Mutual Fund launched its first scheme in July 2000, and ever since it has been ambitious about offering a stable performance of funds across all the variants of schemes it offers. The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC AMC) Limited. HDFC Trustee Company Limited is the trustee of the mutual fund. The HDFC Mutual Fund is sponsored by the Housing Development Finance Corporation Limited (HDFC Ltd.) and Standard Life Investments Limited. HDFC Dividend Yield Fund  Investment Objective The scheme aims to provide capital appreciation and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies.   Investment Strategy   The fund aims to invest a minimum of 65% of the scheme's assets in dividend-yielding companies at the time of investment or companies that choose to do a buyback in addition to payment of dividends or in lieu of dividends.   While trailing dividend yield will be an important factor in selecting a stock, the fund manager will also consider business fundamentals, industry outlook, absolute and relative valuations, growth outlook, and corporate governance.  The fund aims to be sector and market-cap agnostic.  Portfolio Composition  The portfolio holds significant exposure in equity & equity-related instruments at 97.83%, and significant sectoral exposure is to IT-Software, which accounts for roughly 13.01% of the portfolio. Over 68% of the equity was held in large cap, whereas approximately 21% and 11% were held in mid-cap and small-cap stocks as of May 31, 2023. Note: Data as of May 31, 2023. Source: HDFC MF Top 5 Holdings for HDFC Dividend Yield Fund Name Weightage % ITC Ltd. 4.66 ICICI Bank Ltd. 4.10 Infosys Ltd. 4.07 Hindustan Unilever Ltd. 3.95 Tata Consultancy Services Ltd.  3.80 Note: Data as of May 31, 2023. Source: HDFC MF  Performance   This Fund Nifty 500 TRI Nifty 50 TRI   CAGR CAGR CAGR 1 Year 17.16% 12.74% 12.94% Since Inception 21.53% 15.55% 14.26% Note: Data of Regular Plan as on May 31, 2023. Source: HDFC MF  Fund Manager  Mr. Gopal Agarwal (Since December 10, 2021) has over 19 years of experience in Fund Management and 2.5 years in Equity Research. Before HDFC AMC, he worked at DSP Investment Managers Private Limited, TATA Asset Management Company Limited, and Mirae Asset Global Investments (India) Pvt. Ltd.  Who Should Invest in HDFC Dividend Yield Fund?  This scheme is suitable for investors who  Are looking for a diversified portfolio of dividend-yielding stocks with an objective to provide capital appreciation over the long term   Aim for investment in equities with a fair amount of stability and relatively lower risk (than other equity funds) over medium to long term   Aim to take advantage of tax arbitrage via the mutual fund route compared to direct investing in dividend-yielding stocks  Why invest in this Fund?  HDFC Dividend Yield Fund is one of the largest funds in the dividend yield category.  The fund is less volatile, as depicted by the lower standard deviation compared to its benchmark.  The fund is an actively managed diversified equity portfolio that invests across sectors without a market cap bias.  Time Horizon  One should look at investing for at least 3-4 years or even more.  The fund is an open-ended fund. One can invest any time in this fund.  Conclusion  The HDFC Dividend Yield Fund has outperformed the benchmarks and its peers since its inception. However, it is crucial to see how the fund performs over the long term since it was launched just a couple of years ago. Therefore, the fund is suitable for investors looking for long-term wealth creation with an understanding of high risk. However, investors need to remain invested for a long-term time horizon to witness wealth creation.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of approximately Rs 2.4 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. UTI Nifty Next 50 Index Fund  Investment objective The scheme's investment objective is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.  Investment process  UTI Nifty Next 50 Index Fund follows a passive style of investing; that is, it invests in all the companies forming part of the Nifty Next 50 Index (the underlying index) in the same proportion of the underlying index to earn a return as much as the underlying index, before expenses.     Portfolio composition  The scheme had invested 99.86% of its assets in equities, and the remaining were cash and cash equivalents as of May 31, 2023. The scheme had significant exposure to financial services, followed by FMCG and Capital Goods.  Note: Data as of May 31, 2023. Source: UTIMF  Top 5 Holdings for UTI Nifty Next 50 Index Fund Name Sector Weightage % LTIMindtree Limited. Technology 3.92% Cholamandalam Investment & Finance Company Ltd Financial Services 3.55%  Bharat Electronics Ltd. Capital Goods 3.44% Godrej Consumer Products Ltd Consumer Staples 3.43% Pidilite Industries Ltd. Chemicals 3.4% Note: Data as of May 31, 2023. Source: UTIMF  Performance since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs. 14,966, whereas the benchmark (Nifty Infrastructure TRI) would have fetched Rs. 15,885. Note: Performance of the fund since launch; Inception Date – June 08, 2008. Source: utimf.com Invest in Fund Fund Manager  Sharwan Goyal is Fund Manager and Head - Passive, Arbitrage, and Quant strategies at UTI AMC. He is a CFA Charter holder from CFA Institute, USA, and holds a Post-graduate degree in Management (MMS) from Welingkar Institute of Management, Mumbai. He has over 16 years of experience in Risk Management, Equity Research, Portfolio Analysis, and Fund Management at UTI AMC.  Ayush Jain is a Manager and designated as Investment Associate at UTI AMC Ltd. He is a Chartered Accountant holding a charter from the Institute of Chartered Accountants of India. He began his career with UTI AMC Ltd in April 2018 and has over four years of experience in Equity Research, Equity Portfolio Analysis & Portfolio Management Services.  Who should invest in UTI Nifty Next 50 Index Fund?  This product is suitable for investors who are seeking:  Capital Growth in tune with Index returns.  Passive investment in equity instruments comprised in Nifty Next 50 Index  Why Invest in UTI Nifty Next 50 Index Fund?  Passive fund for Long Term Wealth Creation - Simple to understand the product for new investors.  A well-diversified portfolio of 50 companies with better sector diversification than the Nifty 50.  Ideal Time to Stay Invested   Ideal for investment with a time horizon of, preferably, five years or above   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  Investing in Nifty Next 50 companies provides various advantages, such as investment in large-cap, well-diversified, stable companies with growth potential, lesser downside potential compared to mid-cap and small-cap companies, etc. UTI Nifty Next 50 Index Fund is one of the largest index funds having Nifty Next 50 as an underlying index. Investors willing to invest passively for long-term growth and want to save on expense ratio can consider this fund.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. Let us discuss the consumer product – DSP Nifty Next 50 Index Fund.  DSP Nifty Next 50 Index Fund  Investment Objective The primary investment objective is to invest in companies that are constituents of the NIFTY Next 50 Index (underlying index) in the same proportion as in the index and seeks to generate returns that are commensurate (before fees and expenses) with the performance of the underlying index, "subject to tracking error".  Investment Process   The fund replicates the Nifty Next50 TR Index, i.e., invests in the same stocks and proportion as in the Nifty Next50 TRI.    The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the index.  Portfolio Composition  The fund had invested 99.82% in equity, and the remaining was held in the form of debt/cash and cash equivalents as of 30th June 2023.  Note: Data as on 30th June 2023.Source: DSP MF Top 5 Holdings for DSP Nifty Next 50 Index Fund  Name Weightage % LTIMindtree Limited 3.86 Cholamandalam Investment and Finance Company Limited 3.65 Bharat Electronics Limited 3.65 Godrej Consumer Products Limited 3.31 Pidilite Industries Limited 3.21 Note: Data as on 30th June 2023. Source: DSP MF Performance  If you had invested 10,000 at the fund's inception, it would now be valued at Rs 16,881.  Note: Data as of 30th June 2023.Source: DSP MF Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 12.77%.  Invest in Funds Fund Manager  Anil Ghelani has been managing this fund since July 2019 as a Co-Fund Manager. Anil has been working with DSP Group since 2003 and is Head of Passive Investments & Products. Previously, he was the Business Head & Chief Investment Officer at DSP Pension Fund Managers. Before that, he led the Risk and Quantitative Analysis team at DSP Mutual Fund, responsible for monitoring portfolio risk and buy-side credit research on companies across various sectors.  Diipesh Shah has been managing this fund since November 2020 as a Co-Fund Manager. Diipesh has a total work experience of Over 20 years. He has been working with DSP since September 2019 as a Dealer for ETF and Passive Investments. Now he is also the Fund Manager of various schemes of DSP Mutual Fund. Diipesh has worked with JM Financial Institutional Broking Limited, Centrum Broking Limited, IDFC Securities Limited, and Kotak Securities Limited as Institutional Equity Sales Trading.  Who Should Invest in DSP Nifty 50 Index Fund?  Consider this fund if you:   Are an experienced investor & know what you're doing.  Are looking to tactically allocate 10-15% of your overall portfolio to very high-risk opportunities?  Value low-cost, passive investing.  Have the patience & mental resilience to remain invested for a decade or more.  Accept that equity investing means exposure to risk.  Why Invest in this Fund?  Aim to build wealth by investing conveniently in companies that could become the next top 50 Indian companies.  Relatively low-cost, with a comparatively lower expense ratio than active large-cap funds.  Offers the potential to 'earn big' returns by utilizing this high-risk, high-return strategy.  Can help you beat the impact of rising prices over the long term.  Since the fund only replicates an index & does not have an 'active' fund manager, it carries no human decision-making bias.    Time Horizon  One should look at investing for at least ten years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Nifty Next 50 Index Fund provides a good option for passive investing in large-cap equities. It is better to consider index funds for large-cap investing since there is a very low probability of alpha generation in the large-cap space. Investors seeking capital appreciation through large-cap exposure can consider this fund with a time horizon of ten years or more. 

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. Let us discuss the consumer product – DSP Nifty Midcap 150 Quality 50 Index Fund.  DSP Nifty Midcap 150 Quality 50 Index Fund  Investment Objective The scheme's investment objective is to generate returns commensurate with the performance of the Nifty Midcap 150 Quality 50 Index, subject to tracking error.  Investment Process   The scheme is managed passively with investments in stocks in the same proportion as in Nifty Midcap 150 Quality 50 Index.  The investment strategy revolves around minimizing the tracking error through periodic rebalancing of the portfolio, taking into account the change in weights of stocks in the indices as well as the incremental collections/redemptions in the scheme.  A small portion of the net assets will be held as cash & cash equivalent.  Portfolio Composition  The fund had invested 99.69% in equity, and the remaining was held in the form of debt/cash and cash equivalents as on 30th June 2023.  Note: Data as on 30th June 2023. Source: DSP MF Top 5 Holdings  Name Weightage % Tata Elxsi Limited 4.20 Tube Investments of India Limited 3.63 ICICI Securities Limited 3.09 Persistent Systems Limited 3.03 APL Apollo Tubes Limited 2.91 Note: Data as on 30th June 2023. Source: DSP MF  Performance  If you had invested 10,000 at the fund's inception, it would now be valued at Rs 10,850.  Note: Data as of 30th June 2023.Source: DSP MF Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 8.5%.  Invest In Fund Fund Manager  Anil Ghelani has been managing this fund since July 2019 as a Co-Fund Manager. Anil has been working with DSP Group since 2003 and is Head of Passive Investments & Products. Previously, he was the Business Head & Chief Investment Officer at DSP Pension Fund Managers. Before that, he led the Risk and Quantitative Analysis team at DSP Mutual Fund, responsible for monitoring portfolio risk and buy-side credit research on companies across various sectors.  Diipesh Shah has been managing this fund since November 2020 as a Co-Fund Manager. Diipesh has a total work experience of Over 20 years. He has been working with DSP since September 2019 as a Dealer for ETF and Passive Investments. Now he is also the Fund Manager of various schemes of DSP Mutual Fund. Diipesh has worked with JM Financial Institutional Broking Limited, Centrum Broking Limited, IDFC Securities Limited, and Kotak Securities Limited as Institutional Equity Sales Trading.  Who Should Invest in DSP Nifty 50 Index Fund?  Consider this fund if you   Are you an experienced investor or have access to expert advice?  Already have a strong core portfolio and are looking to invest in the mid-cap space.  Want to diversify existing active midcap funds in the portfolio at a lower cost?  Have the patience & mental resilience to remain invested for a decade or more.  Recognize market falls as good opportunities to invest even more.  Accept that equity investing means risk exposure.  Why Invest in this Fund?  Aim to build wealth by investing conveniently in objectively qualified quality mid-cap companies.  Affordable investing as compared to buying individual stocks of the Nifty Midcap 150 Quality 50 Index.  It can help you beat the impact of rising prices over the long term.  Since the fund only replicates an index & does not have an 'active' fund manager, it carries no human decision-making bias.  Have the potential to beat the broader Midcap 150 index & active midcap funds over the long term.  Ideal Time Horizon  One should look at investing for at least ten years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Nifty Midcap 150 Quality 50 Index Fund provides a good option for passive investing in mid-cap equities. Since the fund was launched less than a year ago, it will be required to monitor how efficiently it tracks the underlying index. Investors seeking capital appreciation through mid-cap exposure by following a passive style of investing can consider this fund with a time horizon of ten years or more. 

As the middle class in India continues to thrive and make significant strides toward financial stability and prosperity, the need for reliable investment plans becomes paramount. Making wise investment choices is key to securing one's financial future and achieving long-term goals. Let's dig deeper into the details of the best investment plans tailored specifically for the middle class in India. By understanding these investment avenues, individuals can make informed decisions that pave the way for financial growth and security. https://www.youtube.com/watch?v=C2K84ePN4IU 1. Systematic Investment Plans (SIPs) Systematic Investment Plans (SIPs) have gained immense popularity among middle-class investors in India. SIPs allow individuals to invest a fixed amount regularly in mutual funds, thus harnessing the power of compounding. This investment avenue provides convenience, flexibility, and the opportunity of investing in diverse asset classes such as equity, debt, or hybrid funds. By investing in SIPs, the middle class can benefit from the potential for higher returns over the long term. Moreover, SIPs also enable investors to initiate with small amounts, making it an ideal investment option for those with limited disposable income. 2, Public Provident Fund (PPF) The Public Provident Fund (PPF) is a government-backed savings scheme that has been a popular choice among the middle class for decades. PPF offers a long-term investment horizon of 15 years, ensuring that individuals can accumulate a substantial corpus over time. This scheme provides a fixed interest rate, which is often higher than that of traditional fixed deposits. Opening a PPF account is easy, as it can be done at designated banks and post offices across India. Additionally, contributions made to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act. Furthermore, the accumulated amount in a PPF account can be withdrawn tax-free at maturity, making it an attractive investment option for the middle class. 5 Investment Plan every Parent should have Read More 3. National Pension Scheme (NPS) The National Pension Scheme (NPS) is a government-regulated investment plan specifically designed to cater to retirement needs. NPS offers the middle class an opportunity to build a substantial retirement corpus through regular contributions during their working years. The scheme provides a choice of investment options and fund managers, allowing individuals to customize their investment strategy according to their risk appetite. NPS also provides tax benefits under Section 80C, wherein contributions made towards NPS are eligible for deductions. Additionally, partial withdrawals are allowed under specific circumstances, providing individuals with flexibility in managing their financial needs. It's important to note that while NPS ensures security, it may not offer returns as competitive as other investment options. 4. Equity-Linked Savings Scheme (ELSS) Equity-Linked Savings Schemes (ELSS) are mutual fund schemes that combine tax benefits with the potential for higher returns. ELSS funds primarily invest in equities, which offer the opportunity for capital appreciation over the long term. Investments made in ELSS are eligible for tax deductions under Section 80C of the Income Tax Act. ELSS funds have a mandatory lock-in period of three years, encouraging investors to stay invested for the long term. This aligns with the objective of wealth creation, as staying invested for a longer duration allows investors to benefit from the potential growth of the equity market. 5. Fixed Deposits (FD) Fixed Deposits (FDs) have been a traditional investment avenue for risk-averse individuals, including the middle class. FDs provide a secure and predictable return on investment, making them an attractive choice for conservative investors. With flexible tenures and varying interest rates, individuals have the freedom to choose an investment period that suits their needs. Although the returns from FDs may be lower compared to other investment options, they are considered a safe haven for capital preservation. FDs provide a sense of stability and security, which is appealing to middle-class people seeking to protect their hard-earned money. One must remember this is a safe investment option, but FDs hardly give inflation-beating returns. Affordable Investment Opportunities Read More 6. Direct Equity Investment Direct equity investment is an option for individuals from the middle class having a keen interest in the stock market and a willingness to take calculated risks. Investing in individual stocks needs knowledge, thorough research, and a long-term perspective. While direct equity investment can be rewarding, it is important to exercise caution and consider consulting a financial advisor to make informed investment decisions in the equity market. Diversifying investments across sectors and market capitalizations can help mitigate risk. With the potential for higher returns, direct equity investment can be a valuable addition to a well-diversified investment portfolio. Conclusion Investing wisely holds great importance for the middle class to achieve their financial goals and secure their future. Systematic Investment Plans (SIPs), Public Provident Funds (PPF), National Pension Schemes (NPS), Equity-Linked Savings Schemes (ELSS), Fixed Deposits (FDs), and direct equity investment are among the best investment plans in India for the middle class.  By understanding the unique features, risk-reward profiles, and tax implications of these investment options, individuals can make well-informed decisions aligned with their financial aspirations. Remember, investing is a journey that requires discipline, patience, and periodic reviews to ensure that your investments align with your evolving goals and changing market dynamics. Start early, continue to be committed, and reap the rewards of a well-planned investment strategy tailored to your needs. Consult an Expert Advisor

In the previous article, we discussed AUM in mutual funds. In this article, we will discuss NFO in mutual funds. When it comes to mutual funds, there are a lot of acronyms and jargon that can be confusing for new investors. One such term you may have heard of is NFO or a New Fund Offer.   NFO is a term used in the mutual fund industry to describe the initial public offering of a new mutual fund. In other words, an NFO is when a mutual fund company first offers shares of a new mutual fund to the public.  The NFO period is typically a limited-time offer, during which investors can purchase shares of the new mutual fund at a discount on the fund's actual value. After the NFO period expires, the claims of the new mutual fund will trade on the open market at their then-current market value. Understanding NFO (New Fund Offering)  NFO in a mutual fund can be very beneficial for new investors. So, how do you know whether an NFO is worth your time?   You'll want to consider when an NFO is happening in your market.   Let's say you're in the market for a new mutual fund. If you see that an NFO is happening, you'll want to pay attention to the dates when that NFO begins, how long it lasts, and which funds that one offers.  If you're interested in purchasing a new mutual fund, you'll need to watch the dates when that new fund begins its NFO. You'll also want to pay attention to the NFO terms, particularly the discounts you'd receive for purchasing the shares of a new fund during the period offered.  Finally, you'll want to pay attention to the new fund's performance history. If you're already familiar with the historical performance of a particular fund, you may want to purchase shares of that fund instead. Types of NFO in Mutual Funds 1. Open-ended mutual funds  The vast majority of funds available through NFO are open-ended mutual funds. There are no constraints on the investment time or the number of units in an open-ended mutual fund scheme.  Once the mutual fund is active, fund units can be purchased or sold based on the current NAV.   2. Closed-ended mutual funds  Closed-ended mutual funds do not enable investment or withdrawal from the fund after the NFO completes, usually 3 to 4 years. These funds' units trade on the open market. However, their liquidity is less when compared to open-ended funds. source: pixabay Benefits of NFO in Mutual Funds A new fund offer (NFO) is an offer of units in a mutual fund scheme made by the fund house to the public. It is a way through which a mutual fund scheme launches.   When a mutual fund house launches a new scheme, it first offers the units of the scheme to its existing unit holders.   If there are any unsold units after this, the mutual fund house can offer these to the public. A new fund offer is also a public issue of units or an initial public offer (IPO).  The benefits of investing in a new fund offer are many. Some of these benefits are:  The opportunity to invest in a new scheme that may not be available through regular channels such as banks and brokerages.  The chance to get higher returns than what is available in the secondary market. The chance to invest in a scheme is still in the initial stage of development.  The chance to invest in a scheme that may not have been listed on a recognized stock exchange.  The chance to invest in a scheme with a good track record of performance in the recent past.  The chance to invest in a scheme backed by a knowledgeable and experienced management team.  The chance to invest in a scheme may be an excellent long-term investment.  The chance to invest in a scheme backed by experienced investors.  The chance to invest in a scheme with a good track record of performing well.  The chance to invest in a reliable scheme backed by a reliable source.  How do you invest in an NFO?  An NFO or a New Fund Offer is an investment option made available by mutual fund companies to their investors. It is a way through which the mutual fund company can raise money from the public by issuing units or securities in a new fund.  Such a fund is called a new fund, and it can be of any type. It may be a balanced fund, a stock fund, or a debt fund. Mutual fund companies offer NFOs to investors in two ways. One is using a prospectus, and the other way is using a letter.  The difference between an NFO and an IPO (Initial Public Offering) is that in an NFO, the mutual fund company does not offer all the units or securities of the new fund to the public. It provides only a part of the total.  The rest is there with the mutual fund company for its use. In the case of an IPO, all the units are offered to the public. Therefore, it is called the total offer. Difference NFO vs IPO In the case of an IPO, the units or securities are offered in the form of a certificate. This certificate needs to be issued to the investor as a stock certificate. Then, the mutual fund company gives a prospectus and offers the certificate holders a chance to buy additional units or securities from the mutual fund company.  Things to keep in mind before investing in an NFO Here are 3 things to keep in mind before investing in an NFO: The reputation of an AMC: The track record of the AMC influences the assets under management and the performance of a new NFO.  Minimum Investment - There is always a stipulated number of units that must be bought in the NFO.  Nature of instrument - An NFO documentation provides information about the risk associated with the fund, suitability, expected ROI, etc. FAQs What is NFO in mutual funds? NFO is a term used in the mutual fund industry to describe the initial public offering of a new mutual fund. In other words, an NFO is when a mutual fund company first offers shares of a new mutual fund to the public.  Is it good to invest in NFO mutual funds? NFO mutual funds can be risky investments. Unlike other mutual funds, they do not have a performance history that can be checked to determine their success or past performance. Which is better NFO or IPO? NFO and IPO are two different investments. In an IPO, the units or securities are offered in the form of a certificate. This certificate needs to be issued to the investor as a stock certificate. Then, the mutual fund company gives a prospectus and offers the certificate holders a chance to buy additional units or securities from the mutual fund company. Is NFO taxable? Yes, NFOs are taxed like other mutual funds. What are the benefits of investing in NFOs?  Here are some benefits of investing in NFOs: The opportunity to invest in a new scheme that may not be available through regular channels such as banks and brokerages. A chance to get higher returns than what is available in the secondary market.A scheme is still in the initial stage of development. A new scheme that may not have been listed on a recognized stock exchange. Invest in a scheme backed by a knowledgeable and experienced management team.  Is NFO a good investment?  Ans. An investor should not invest in a fund only because its net asset value (NAV) is low during NFO. The price at which the cash raised during an NFO will be invested is more crucial. Let's say there are two schemes: Scheme A and Scheme B. Units in Scheme A are brand new and come with a face value of Rs.   Is it better to invest in an NFO or mutual fund?  Ans. Existing mutual funds have a competitive advantage in terms of information and performance, but NFO opens a new market.  What is the benefit of NFO?  Ans. A mutual fund house can raise money through an NFO to buy securities or debt instruments. Consumers can commonly purchase units from AMCs for INR 10 per unit NAV for a subscription period of ten (10) to fifteen (15) days.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

As parents, we have a profound responsibility to ensure a bright and secure future for our children. While providing love, care, and education are crucial aspects, financial planning plays a pivotal role in setting the stage for their success. Investing wisely is key to securing their future aspirations and safeguarding against unforeseen circumstances. Let's explore five essential investment plans that every parent should consider, ranging from mutual funds and US ETFs to US stocks and insurance. So, we will dive in and discover the strategies that can pave the way for your child's financial well-being. Education Fund: The Power of Mutual Funds One of the most crucial investments you can make as a parent is in your children's education. Start by setting up an education fund that specifically caters to their academic pursuits. Consider tax-efficient options like a 529 plan, which allows you to invest in a variety of mutual funds, ensuring growth potential while enjoying tax benefits. Platforms like EduFund (www.edufund.in) offer valuable guidance and tools to help you plan and manage your child's education fund effectively. investment plans US ETFs: Diversification Made Easy 1. Exchange Traded Funds Exchange-Traded Funds (ETFs) have gained significant popularity in recent years due to their flexibility and global exposure. Just like mutual funds, ETFs represent a basket of securities, including stocks, bonds, commodities, or a combination thereof. However, unlike mutual funds, ETFs are traded on stock exchanges throughout the trading day at market prices. ETFs offer several benefits, including transparency, liquidity, and cost-effectiveness. Parents can buy and sell ETFs at any time during market hours, allowing for more flexibility in managing their investments. Additionally, ETFs disclose their holdings daily, ensuring transparency in the investment portfolio. With generally lower expense ratios compared to mutual funds, ETFs offer a cost-effective investment option for parents. 2. USA Stocks For parents who are comfortable with taking on more active roles in their investment journey, investing in individual stocks can be an exciting avenue. Owning shares of well-established companies can offer substantial returns over time. While investing in individual stocks requires careful research and monitoring, it can provide the potential for higher growth compared to mutual funds or ETFs. EduFund's resources can assist you in understanding stock investing basics and identifying companies with strong fundamentals. To mitigate risk, parents can consider diversifying their stock portfolios across different sectors and industries. This diversification helps reduce the impact of a single stock's performance on the overall portfolio. In addition, parents should adopt a long-term investment mindset and focus on the fundamentals of the companies they invest in rather than short-term market fluctuations. Investment Tips for Dad's in India Read More Insurance - Protecting Your Family's Future Insurance is a pivotal component of any comprehensive financial plan, especially for parents. Life insurance provides financial protection to your family in the event of your untimely demise. It ensures that your children's education, living expenses, and future aspirations are secure, even in your absence. Term life insurance offers coverage for a specified period, providing a higher coverage amount at an affordable premium. Additionally, health insurance safeguards against unexpected medical expenses, offering peace of mind during uncertain times. By securing adequate insurance coverage, parents can safeguard their family's financial well-being and ensure a secure future. Investment Tips for Mom's in India Read More Mutual Funds - Diversify and Grow Your Wealth Mutual funds are an excellent choice for parents seeking diversification in their investment portfolios. These funds pool money from several investors to invest in a variety of asset classes, including stocks, bonds, and money market instruments. Managed by professional fund managers, mutual funds allow parents to benefit from their expertise and experience in making investment decisions. By spreading investments across different sectors and markets, mutual funds help reduce the risk associated with investing in individual stocks. Parents can choose from many types of mutual funds on the basis of their risk appetite and financial goals. For those seeking stability, bond funds can offer a regular income with lower volatility. On the other hand, equity funds offer an opportunity for capital appreciation through investments in stocks. Balanced funds offer a blend of both equity and bond investments, providing a balanced risk-return profile. By investing in mutual funds, parents can access professional investment management and enjoy the benefits of diversification. You can lay a strong foundation for your family's future by incorporating these investment plans into your financial strategy. Remember that investment decisions should align with your risk tolerance, financial goals, and time horizon. It's always suggested as advice to seek guidance from financial advisors who can provide personalized advice based on your specific circumstances. Conclusion  Investing wisely is an integral part of parental responsibility. By incorporating these five investment plans into your financial strategy, you can take proactive steps toward securing your child's future while also protecting your own financial well-being. Remember to conduct thorough research, seek professional advice, and regularly review your investment portfolio to adapt to changing circumstances. By combining long-term vision with disciplined investment practices, you can build a strong financial foundation for your children, allowing them to chase their dreams with confidence. Start planning today and pave the way for a prosperous future for your family. Consult an Expert Advisor

As the name suggests, open-ended mutual funds are always open to investment along with redemptions. In the world of mutual funds, open-ended funds are a common type of investment. One of the key highlights of these funds is that they don’t have any form of lock-in period or maturities. Hence, it is always open.  An open-ended mutual fund is an investment scheme where the shares can be issued and redeemed at any time. Based on data from (the Association of Mutual Funds in India) AMFI, a total of 14 open-ended mutual funds were launched in March 2021 with a total mobilization of INR 4539 crores.   In an open-ended mutual fund, you have to calculate the (Net Asset Value) NAV daily on the value of underlying securities at the end of the day. Here are some essential things to know about open-ended mutual funds. Difference between an open-ended mutual fund and a close-ended mutual fund  To be precise, there are various types of differences between open-ended mutual funds and close-ended mutual funds. Here are the primary differences between the two mutual funds:  1. Liquidity   In open-ended mutual funds, investors enjoy higher liquidity. Simply put, you can purchase or sell units at any time except the units of ELSS funds. The units are locked in for three years from the date of investment. This is one of the primary advantages of open-ended mutual funds compared to close-ended mutual funds.   On the contrary, close-ended mutual funds have no liquidity during the lock-in time. You can redeem your units only after the mandatory lock-in period is over.   Ways in which you can invest  In open-ended mutual funds, you can invest via lump sum and through SIPs. Moreover, you can make any number of purchases in the fund.   On the contrary, in close-ended mutual funds, you can only invest during the (New Fund Offer) NFO. In other words, you cannot invest in SIPs.   1. Investment amount   In an open-ended mutual fund, you can start investing with as minimum as INR 500 or INR 1000.   On the contrary, in a close-ended mutual fund, the minimum amount for investment is INR 5000.   2. Track record of the funds   You can invest in open-ended mutual funds by carefully checking the track record of the schemes in which you want to invest.   Since you can purchase close-ended funds only during the NFO period, no track record is available. Investing in a close-ended fund requires attention and minute assessment.  3. Average rupee cost  Through SIPs in open-ended mutual funds, you can take the benefit of rupee cost averages of the unit price. In the case of a lump sum amount, you can also invest based on the market fluctuations. You can also add more units if the market is stable.   On the other hand, in close-ended mutual funds, there is no average rupee cost. This is because close-ended mutual funds don’t accept any investments when the NFO period gets over.  30 source: pixabay Advantages of open-ended mutual fund  1. Liquidity   As an investor, you can redeem the units of open-ended mutual funds. There is no lock-in period that makes you enjoy the liquidity of open-ended mutual funds.   2. SIP availability   In open-ended mutual funds, you can purchase units on any working day. You can even set up a systematic investment plan to deposit a fixed amount.   3. Performance of the funds   You can easily assess the performance of the funds and their past records in an open-ended mutual fund.   Disadvantages of open-ended mutual fund  1. High volatility   The NAV of open-ended mutual funds fluctuates based on the performance of its underlying securities.   2. Relatively high risk  Open-ended mutual funds have a relatively high risk attached to them since the NAV of the funds fluctuates on a daily basis due to market volatility.   Is SIP an open-ended mutual fund?  Open-ended mutual funds allow you to track the performance of the fund, which assists in making informed decisions. In other words, SIP is an integral component of open-ended mutual funds and allows you to enjoy greater flexibility.     How do I know if the mutual fund is open-ended?  There are various ways to know if the mutual fund is open-ended or not. For instance, an open-ended mutual fund contains SIPs. Moreover, you will enjoy greater flexibility and market regulations in an open-ended mutual fund.   Is the Index fund open-ended?  In case you didn’t know, index funds are open-ended. It attempts to replicate an index like the S&P 500. Hence, it doesn’t allow the manager to actively select securities to purchase.  Investing in mutual funds is a great way to enhance your investment portfolio. By knowing about open-ended mutual funds, you will be able to gain greater flexibility. Open-ended funds are suitable for investors who can invest in a liquid investment instrument and undertake market risks. FAQs What is the difference between open-ended and closed-ended mutual funds?  Ans. Contrary to closed-ended funds, which may only be redeemed when the fund's investment tenure has been completed, open-ended funds allow for the purchase or sale of assets at any time.  What is a closed-ended mutual fund?  Ans. Close-ended funds are defined by the Securities and Exchange Board of India (SEBI) as mutual funds with a predetermined maturity period. At the moment the program is launched, these mutual funds are accessible for subscription for a set amount of time.  Is SIP an open-ended mutual fund?  Ans. Systematic Investment Plans (SIPs) allow you to invest in open-ended schemes. SIPs cannot be used to invest in closed-ended schemes; during the NFO period, only lump sum investments are permitted.  Consult an expert advisor to get the right plan for you    TALK TO AN EXPERT

In the previous article, we discussed the top 10 large-cap mutual funds in India. In this article, we will discuss the top 10 midcap mutual funds in India. A mid-cap fund is a fund that invests majorly in mid-cap companies as per market capitalization. As per SEBI regulations, a mid-cap fund is required to invest a minimum of 65% of its assets in mid-cap companies through equity. Advantages: High Growth Opportunity: Companies in these funds have a high growth opportunity because of their size and operations. The companies have the potential to become large-cap companies in the future. Diversification: These funds provide a good diversification in your portfolio by spreading the risk across market capitalization companies Top 10 mid-cap mutual funds S.No.Fund Name3-Yr Annualized Performance1PGIM India Mid-cap Opportunities Fund Direct Plan-Growth34.66 %2Quant Mid Cap Fund-Growth Option Direct Plan32.87 %3SBI Magnum Mid Cap Fund Direct-Growth25.55 %4Motilal Oswal Midcap 30 Direct Growth24.46 %5Edelweiss Mid Cap Fund Direct Plan-Growth Option24.39 %6Kotak Emerging Equity Scheme Direct-Growth23.33 %7UTI Mid Cap Fund-Growth Option Direct23.06 %8Mahindra Manulife Mid Cap Unnati Yojana Direct Growth22.66 %9Baroda BNP Paribas Mid Cap Fund Direct Plan Growth Option22.06 %10Axis Mid Cap Fund Direct Plan-Growth22.05 %Note: Data as of July 16, 2022Source: Morningstar 1. PGIM India Mid-cap Opportunities Fund Direct Plan-Growth - Midcap mutual fund Fund analysis: The fund has outperformed the category and the benchmark with good margins. The fund is investing predominantly in mid-cap companies. The fund is rated 5-star by Morningstar. The risk grade is above average, and the returns grade is high. The fund follows a growth style of investing. The risk is spread across companies with the top 10 holdings consisting of 35.25%. The fund has a high risk (measured by standard deviation) than the category average. ProsConsA top performer in its category. The fund captured the market well when it was rising and falling, better than the category average.The minimum monthly SIP amount is Rs 1000/- thus marginal investors may not be able to take exposure 2. Quant Mid Cap Fund-Growth Option Direct Plan - Midcap mutual fund Fund analysis: The fund’s objective is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Mid Cap companies. The risk grade is below average, and the returns grade is high. The fund has a beta of 0.85 indicating that the movement of the fund is less relative to the market movement. The fund has a concentrated portfolio of 34 stocks, investing in both value & growth stocks. The fund has low risk (measured by standard deviation) than the category average. ProsConsA consistent top performer in its category. The fund captured the market well when it was rising and falling, better than the category average.Concentrated portfolio of 34 stocks. 3. SBI Magnum Mid Cap Fund Direct-Growth - Midcap mutual fund Fund analysis: The fund’s objective is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of Midcap companies. The risk grade is above average and the returns grade is high. The fund has invested across market capitalization and sectors of growth stocks. The fund holds a good risk-to-reward ratio. The fund has a high risk (measured in standard deviation) than the category average. ProsConsFund has outperformed the category average over the different horizons. Consistent performer.The fund has a high expense ratio. 4. Motilal Oswal Midcap 30 Direct-Growth - Midcap mutual fund Fund analysis: The fund’s objective is to achieve long-term capital appreciation by investing in a maximum of 30 quality mid-cap companies having long-term competitive advantages and potential for growth. The risk grade is high and the returns grade is above average. The fund has a beta of 0.95 indicating that the movement of the fund is quite closely relative to the movement of the market. The fund has a concentrated portfolio of growth stocks consisting of 27 companies spread over different sectors. The fund has a high risk (measured in standard deviation) than the category average. ProsConsThe fund captured the market well when it was rising. The fund captured the market well when it was falling.Concentrated portfolio. Source: pixabay 5. Edelweiss Mid Cap Fund Direct Plan-Growth Option - Midcap mutual fund Fund analysis: The fund has outperformed the category and the benchmark with good margins. The risk grade is average and the returns grade is above average. The fund has delivered consistent returns over different horizons and has a well-diversified portfolio of 61 growth stocks, investing across market capitalization. The fund has a high risk (measured in standard deviation) than the category average. ProsConsFund captured the market well when it was rising. Consistent performer.Returns are above average. 6. Kotak Emerging Equity Scheme Direct-Growth - Midcap mutual fund Fund analysis: The fund’s objective is to generate long-term capital appreciation by investing predominantly in mid-companies. The scheme may also invest in debt and money market instruments, as per the asset allocation table. The risk grade is above average and the returns grade is above average. The fund has a well-diversified portfolio across market capitalization and sectors except for the communication services sector. The fund has a high risk (measured in standard deviation) than the category average. ProsConsWell-diversified portfolio.Good risk-to-reward ratio.Minimum monthly SIP amount Rs 1000/- 7. UTI Mid Cap Fund-Growth Option Direct - Midcap mutual fund Fund analysis: The fund is rated 4-star by Morningstar. The risk grade is average and the returns grade is above average. The fund has a well-diversified portfolio across market capitalization and sectors. The top 10 holdings of the fund consist of 25.87% only and the fund holds a total of 72 stocks in the portfolio. The fund has low risk (measured in standard deviation) than the category average. ProsConsThe fund captured the market well when it was rising. Fund captured the market well when it was falling.The fund has a high expense ratio. Source: pixabay 8. Mahindra Manulife Mid Cap Unnati Yojana Direct-Growth - Midcap mutual fund Fund analysis: The fund has delivered marginally good returns over the long-term period. The risk grade is low and the returns grade is above average. The fund has a blended style of investing which means the fund is having both value & growth stocks in its portfolio. The fund has a well-diversified portfolio across market capitalization and sectors. The top 10 holdings of the fund consist of 28.33% only. The fund has low risk (measured in standard deviation) than the category average. ProsConsWell-diversified portfolio.Relatively low risk.6-Month returns are less than the category average. 9. Baroda BNP Paribas Mid Cap Fund Direct Plan Growth Option - Midcap mutual fund Fund analysis: The fund will emphasize companies that appear to offer opportunities for long-term growth and will be inclined toward companies that are driven by a dynamic style of management and entrepreneurial flair. The risk grade is below average and the returns grade is above average. The fund is rated 4-star by Morningstar. The fund has a blended style of investing which means the fund is having both value & growth stocks in its portfolio. The fund has low risk (measured in standard deviation) than the category average. ProsConsThe fund captured the market well when it was falling. Broad exposure to the market.1-Yr returns are less than the category average. 10. Axis Mid Cap Fund Direct Plan-Growth - Midcap mutual fund Fund analysis: The fund is giving consistent returns over the long term with an attractive risk-to-reward ratio. The fund is 5-star rated by Morningstar. The risk grade is low and the returns grade is above average. The fund has a beta of 0.76 indicating that the movement of the portfolio has very less relation to the market movement. The fund has outperformed the category and the benchmark. The fund has low risk (measured in standard deviation) than the category average. ProsConsAttractive risk-to-reward ratio.Consistent performer.Fund was not able to capture the market well when it was rising. Features of Midcap Mutual Funds  Before we delve further, let’s check out what features midcap mutual funds have and how would you identify the best ones.   1. Risk-return Ratio Not too much. Not too less. Unlike small-cap mutual funds, with the best mid-cap mutual funds, you get a moderate risk-return ratio. Despite the low risk, these MF schemes often outperform large-cap equity funds and generate greater returns in the long run.   2. Asset Allocation When it comes to investing equity or equity-based securities of mid-cap companies, the SEBI mandates at least 65% of the total assets to be invested. The rest of the assets can be allocated to debt securities.   Major Advantages of Midcap Mutual Funds in India 1. Transparency SEBI (Securities and Exchange Board of India) mandates all mid-cap mutual funds and displays their expense ratios, NAVs, and month-end portfolios. This data is also regulated closely by the apex body.   Who are the Top Midcap Mutual Funds Suited For?  Midcap mutual funds come with a probable capacity for market-beating returns. For this, investors who are willing to sit through long-term plans and face volatility would best fit. Some factors that must be considered before opting for these schemes are -  One must understand their financial goals before making a commitment.   Everyone has a certain capacity to bear the risk levels of mutual fund schemes. One must evaluate the risk levels carefully before investing.  Investors can opt for schemes that have a low expense ratio (the portfolio management fee one has to pay to the AMCs) and a decent track record.   If one redeems their funds before a specific period, the AMCs levy a penalty called Exit Load. Investors must check the Exit Load, which is denoted in percentage and mentioned in the scheme-related documents.    Tax on Midcap mutual funds  Here is the taxability of top midcap mutual funds.   1. TDS A midcap funds’ dividend that exceeds INR 5,000/ fiscal year is applicable for 10% TDS.  2. Long-term Capital Gains Tax (LTCG Tax) If a sold unit’s holding period is over 1 year and the gains exceed INR 1 L, the LTCG tax will be 10%. Any amount below INR 1 L/ FY is exempted from LTCG tax.   3. Short-term Capital Gains Tax (STCG Tax) If one sells the fund units within one year of the purchase, they’ll have to pay a 15% STCG tax on the capital gains. Conclusion: For any investor who is looking for capital appreciation with comparatively lower risk than the small-cap mutual funds. Companies in this fund are fast-growing companies with the potential to become large-cap in the future. TALK TO AN EXPERT FAQ Can I liquidate my midcap mutual funds easily?  Yes, these funds are highly liquid and one can sell their units whenever they want. What kind of taxes would I have to pay on midcap mutual funds?  You’ll have to pay 10% TDS if any dividend from the funds exceeds INR 5,000/ FY. 10% LTCG tax if your gains exceed INR 1 L and the holding period of the sold units is over 1 Year. 15% STCG tax on your capital gains if you sell your fund units within 1 year of purchase. Which is the best midcap mutual fund in India right now?  As of now, PGIM India Mid-cap Opportunities Fund Direct Plan-Growth is the top midcap mutual fund in India.   What is mid-cap mutual funds?  Ans. A form of equity mutual fund known as a "mid-cap fund" invests in the stock of mid-sized businesses. According to the rules, mid-cap companies are defined as those ranked 101 through 250 on the basis of market capitalization.  Are Midcap funds safe?  Ans. Mid-cap funds can be quite volatile in the short term; therefore, experts advise investors to avoid them if their investment horizon is short. They should make up less than 20% of their overall investment portfolio, they advise. A 20% allocation to mid-cap funds may be considered, depending on risk tolerance.  Which type of SIP gives the highest return?  Ans. Multi-cap schemes provide better ROIs than both types of SIPs, but they are more volatile than large-cap or mid-cap schemes. For investors who desire high returns but don't mind taking some risk with their investments, these SIPs are the perfect option.  Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes.