Investing in Mid Cap Mutual Funds is a smartest way to invest in your long-term wealth creation. It is akin to investing in market leaders of tomorrow. Of course, these funds carry high risk component compared to large cap mutual funds, but then the returns are also much better than the latter.
Here are the top 5 best mid-cap mutual funds to invest in.
Please bear in mind that past performance is not reflective of future performance, but it is a recommended guide for your investment decision. The performance data is in accordance with information available on September 2016.
- Franklin India Prima Fund – The fund has delivered 37.36 percent, 24.95 percent and 15.71 percent annually in a 3 year, 5-year and 10-year period, respectively. The fund has a commendable history, it was launched on December 1, 1993. The return since launch has been 21.06 percent per annum, which is enviable. The AUM size of this fund (as on August 2016) is Rs. 4542 crore. The expense ratio of this fund is 2. 31 percent. The top 5 sectors for this fund include financial, engineering, services, automobiles and consumer durables. The fund managers are Hari Shyamsunder, R. Janakiraman and Srikesh Nair. Despite a lean patch in 2006-2008, the fund has made a phenomenal comeback and has beaten both the benchmark and category average by huge margins.
- BNP Paribas Mid Cap Fund – The fund has delivered 35.11 percent, 24.15 percent and 12.50 percent annually in a 3, 5 and 10-year period, respectively. BNP Paribas Mid Cap Fund came into existence on May 2, 2006. Since launch, it has delivered 10.48 percent per annum. The expense ratio for this fund is 2.55 percent. The top five sectors for this fund is financial, services, construction, chemicals and healthcare. The AUM size of this fund (as on August 2016) is Rs. 700 crore. The fund manager is Shreyas Devalkar, who has been with the fund since 2011. Though the fund did not do anything exception in the first three years, it picked pace and beat both benchmark returns and category average comprehensively, thanks to its quality-stock picking approach. The company invests in companies that are either leaders in mid-caps sectors or the ones that can usurp leaders in large cap sectors.
- UTI Mid Cap Fund – One of the most trusted names in the mutual fund arena, UTI Mid Cap Fund has delivered 42 percent, 24.36 percent and 16.67 percent annually in the 3, 5 and 10-year period. The fund was launched on April 7, 2004 and it has delivered 20.29 percent per annum since its launch. The asset size is Rs. 3663 crore (as on August, 2016) with an expense ratio of 2.28 percent. The top five sectors for this fund is financial, automobile, construction, FMCG and chemicals. In the last 6 years, UTI Mid Cap Fund has been synonymous with consistency and peak performance. The portfolio of this fund usually has a mix of 55 to 60 percent in mid-caps, 25 percent in large caps and 25 to 30 percent in small caps. It consciously avoids small caps with market caps below Rs. 500 crore. The fund manager Anoop Bhaskar is credited with the growth story for the fund. Even though he left the fund house, the man who replaced him, Lalit Gopalan Nambiar (since January 2016) has stuck to the same style of process-oriented equity picks.
- HDFC Mid Cap Opportunities Fund – The fund has delivered 39.61 percent and 23.88 percent annually in a 3 and 5-year period, respectively. HDFC Mid Cap Opportunities Fund started off on June 25, 2007 and the return since launch has been 17.74 percent per annum. The AUM size is Rs. 12,997 crore (as on August 2016) and the expense ratio is 2.14 percent. The top 5 sectors, the fund concentrates on are financial, engineering, healthcare, services and chemicals. HDFC Mid Cap Opportunities Fund is a solid fund that performs well in bull markets and even better in bear markets. The fund has been helmed by Chirag Setalvad, since 2007. It is known for its brilliant performance across the years, with 75 percent focus in mid caps and 25 percent in large caps. What makes this fund special is its ability to withstand any kind of bear market, as was indicated in the years 2008, 2011 and 2013 – this was one of a kind mutual fund that contained losses better than its peers. If you are looking for a fund that gives high returns and brave market lows, then this is the one.
- L&T India Value Fund – The fund has delivered 34.80 percent and 23.04 percent annually in the 3 and 5-year period. L&T India Value Fund is a relatively fund, having set up shop on January 8, 2010; it has delivered 16.77 percent per annum since inception. The expense ratio is 2.17 percent and the AUM size is Rs. 1,677 crore. The top five sectors the fund concentrates on, are financial, energy, construction, automobiles and chemicals. The fund managers are Abhijeet Dakshikar since June 2013 and Venugopal Manghat since Nov 2012