midcap-mutual-fund

Best top 10 mid-cap mutual funds in India. All you need to know

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:

  1. 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.
  2. 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 Performance
1PGIM 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, 2022
Source: Morningstar

1. PGIM India Mid-cap Opportunities Fund Direct Plan-Growth

Fund analysis:

The fund has outperformed the category and the benchmark with good margins. The fund is investing predominantly in mid-ap 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.

ProsCons
A 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

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.

ProsCons
A 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

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.

ProsCons
Fund 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

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.

ProsCons
The fund captured the market well when it was rising. The fund captured the market well when it was falling.Concentrated portfolio.
mutual funds
source: pixabay

5. Edelweiss Mid Cap Fund Direct Plan-Growth Option

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.

ProsCons
Fund captured the market well when it was rising. Consistent performer.Returns are above average.

6. Kotak Emerging Equity Scheme Direct-Growth

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.

ProsCons
Well-diversified portfolio.Good risk-to-reward ratio.Minimum monthly SIP amount Rs 1000/-

7. UTI Mid Cap Fund-Growth Option Direct

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.

ProsCons
The 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.
midcap mutual funds
source: pixabay

8. Mahindra Manulife Mid Cap Unnati Yojana Direct Growth

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.

ProsCons
Well-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

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.

ProsCons
The 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

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.

ProsCons
Attractive risk-to-reward ratio.Consistent performer.Fund was not able to capture the market well when it was rising.

Conclusion:

For any investor who is looking for capital appreciation with comparatively low 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.

Consult an expert advisor to get the right plan for you

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 the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes.

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