Mid-cap mutual funds aim at generating returns which beat the benchmark when the markets play well. They are much riskier than large-cap mutual funds due to high volatility.
|Fund Name||NAV||NAV Date||1 Week||Rank||1 Month||Rank||3 Months||Rank||6 Months||Rank||1 Year||Rank||3 Years||Rank||5 Years||Rank||10 Years||Rank||Ince.||Rank|
|HDFC – Mid-Cap Opportunities-G||50.0270||11/09/2019||117.99||10||-1.44||12||-35.27||15||-13.98||10||-11.30||12||3.00||12||9.03||6||16.92||1||14.08||9|
|Invesco – India Mid Cap-G||45.5000||11/09/2019||119.57||8||17.28||2||-27.36||3||-11.73||9||-7.63||6||6.04||1||8.96||8||16.17||2||12.99||11|
|Edelweiss – Mid Cap Reg-G||24.8510||11/09/2019||128.57||6||6.36||8||-29.35||7||-10.49||7||-9.58||9||4.55||7||9.59||5||15.94||3||8.08||16|
|Franklin India – Prima-G||897.7425||11/09/2019||118.67||9||-0.93||11||-27.94||4||-9.71||6||-6.11||5||4.18||8||9.95||4||15.79||4||19.05||4|
|BNP Paribas – Midcap-G||29.8800||11/09/2019||104.31||14||-10.49||16||-32.04||11||-7.92||2||-7.81||7||1.66||13||7.45||12||15.78||5||8.53||15|
|DSP – Midcap Reg-G||51.6220||11/09/2019||115.85||11||6.44||7||-22.65||1||-8.04||3||-4.92||2||5.14||4||10.36||3||15.54||6||13.64||10|
|Kotak – Emerging Equity Reg-G||36.5250||11/09/2019||154.64||5||10.08||5||-28.61||5||-7.85||1||-5.27||3||5.06||5||11.27||1||15.05||7||10.96||13|
|L&T – Midcap-G||121.3300||11/09/2019||162.64||4||2.28||10||-33.01||13||-15.38||14||-12.81||14||5.87||2||10.66||2||14.85||8||17.98||5|
|UTI – Mid Cap Reg-G||92.3009||11/09/2019||167.90||2||12.26||4||-31.71||10||-14.60||11||-10.46||11||0.06||16||5.95||16||14.58||9||16.18||6|
|Sundaram – Mid Cap Reg-G||423.9491||11/09/2019||106.47||13||-2.24||13||-39.86||16||-15.78||15||-12.87||15||0.98||14||8.02||10||14.03||10||24.45||1|
1. What are Mid-Cap Mutual Funds?
Mid-cap mutual funds, as the names suggest, invest in stocks of the mid-sized companies or stocks with medium market capitalisations. In this context, the word ‘cap’ refers to the market capitalisation or size of the listed company. For mid-cap, the market capitalisation ranges between Rs 500 crore to Rs 10,000 crore. A company’s size is an essential criterion while selecting equity portfolios because depending on the size of the company, the portfolio would have its unique set of opportunities and risks.
Since these funds are invested in mid-cap companies, during a bull run, they deliver stupendous returns, sometimes even outperforming large-cap funds or diversified equity funds. This happens because, during a bull market, the underlying stocks in the funds are able to unlock their values and tap into the growth opportunities.
2. Who Should Invest in Mid-Cap Mutual Funds?
Investors who are looking for faster growth and have an appetite for a high-risk can invest in mid-cap funds. Mid-sized companies provide faster earnings and steep growth while being volatile on the stock index. Investors who are ready to face volatility of these stocks in expectations of fascinating returns can invest in these funds.
3. Advantages of Mid-Cap Mutual Funds
Mid-cap funds have generally outperformed large-cap funds. The very nature of the mid-cap funds makes the trend to continue for quite some time.
The mid-cap funds are relatively underfollowed in stock markets as compared to large-cap funds. This provides investors with an excellent opportunity to seek fast growth in their investments using these funds.
4. Things an Investor Should Consider
Though mid-cap funds perform very well in bull runs, their value takes quite a beating when the market sentiment is dropping. Also, in the case of high-quality stocks, mid-cap funds are not appropriate since they have a higher risk factor involved. Mid-cap stocks suffer from liquidity constraints due to their smaller capital base i.e. the number of shares offered by the company.
Since the underlying shares are characterised by lower market capitalisation and limited liquidity, these funds tend to follow cycles of boom and dip. This is based on the mirroring of the stock indices in general.
The performance of mid-cap funds is mentioned below for the year 2017.