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Best Midcap Mutual Funds to Invest

In recent times Mutual Fund is one of the most sought investment tool in India. Investment in mutual fund helps in multiplying investments of the investor. This tool helps in achieving and generating huge returns on the investments done in mid cap funds. Mid Cap funds as the name suggest is a type of mutual fund scheme that help investors to invest their money in stocks and shares of mid cap companies. Here the word ‘cap’ refers to capitalization. Thus with mid cap mutual fund investors can invest in companies having medium market capitalization. Investment in midsized companies is favorable for investors who expect higher returns and have a considerably high risk appetite. Investment in mid cap mutual fund is beneficial because these funds allow higher opportunities for multiplying investment.

Top Midcap Mutual Funds for 2019

Following is a list of top Midcap Mutual Funds for investors to opt for in the year 2019

L & T Midcap Fund

L&T midcap fund is a conservative way of investing in mutual fund. Investment in this mutual fund is suitable for people who have low risk appetite. The portfolio distribution of fund is 75% mid cap companies, 4% large cap companies and remaining 9% in small cap companies. The portfolio of this mutual fund consist of companies in sector of finance, cement and industrial products. Following are the details of the fund:

Particulars of the L&T Midcap Fund
Commencement Date09th Aug 2004
Fund ManagerMr. S N Lahiri and Mr. Vihang Naik
Assets under ManagementRs 3095 Crore
Fund TypeMid Cap Fund
Fund BenchmarkNifty Midcap 100 TRI
Expense RatioNifty Midcap 100 TRI

HDFC Midcap Opportunities Fund

This fund is introduced by HDFC with a view to offer its customers with profitable investment portfolio. Following is a detailed description of the fund.

Particulars of the HDFC Midcap Opportunities Fund
Commencement Date25th June 2007
Fund ManagerMr. Chirag Setalvad
Assets under ManagementRs 19532 Crore
Fund TypeMid Cap Fund
Fund BenchmarkNifty Midcap 100 TRI
Expense Ratio1.98%

Majority of investment made under this mutual fund has been made in small and medium sized companies while around 25% of investment has been done in large cap companies. A systematically planned investment is carried under this mutual fund as most of the corpus is invested in companies which have a growth rate of 15% to 20%.

DSP Midcap Fund

DSP is one of the premier companies dealing in trading of mutual fund. One of the most promising midcap fund traded by DSP is the DSP Midcap Fund. Following are the details of the fund:

Particulars of the DSP Midcap Fund
Commencement Date14th November 2006
Fund ManagerMr. Vinit Sambre and Ms. Resham Jain
Assets under ManagementRs 5215 Crore
Fund TypeMid Cap Fund
Fund BenchmarkNifty Midcap 100 TRI
Expense Ratio2.28%

The investment under this fund is well thought and has been done systematically. The fund focuses on investing around 79% of investors corpus in mid-cap companies with minimum mandatory investment of 65% corpus in mid cap companies while 10% investment is done in large cap companies and remaining in small cap companies. Thus, we can observe that the investment is a well-balanced investment.

Invesco India Midcap Fund

Invesco Asset Management (India) Private limited has introduced Invesco India Midcap fund that invests the investors corpus with a focus to earn profit on investments.

Particulars of the Invesco India Midcap Fund
Commencement Date19th April 2007
Fund ManagerMr. Pranav Gokhale and Mr. Neelesh Dhamnaskar
Assets under ManagementRs 287.36 Crore
Fund TypeMid Cap Fund
Fund BenchmarkNifty Midcap 100 TRI
Expense Ratio2.51%

Investment under this mutual fund comprises of investment of 96.26% in Indian Stocks out of which 8.5% in Large cap stocks, 73.5% in mid cap stocks and 14.26% in small cap stocks. Investment in the Invesco India Midcap Fund is suitable for investors who are looking for a 3 years to 4 years of investment horizon and expecting a high rate of return. Under this mutual fund majority investment of corpus is done under Equity portfolio (96.26%) while the remaining of 3.74% is done under other category comprising of reverse repo and net receivables.

Axis Midcap Fund

Axis Midcap Fund is offered by Axis Mutual fund. Investment under this mutual fund is suitable for investors who are looking for high returns on their investment and have a financial horizon of 3 to 4 years. Out of the total investments, this mutual fund invests around 80.87% of investment in Indian stocks out of which 16.27% investment is done in large cap stocks, 62.9% in mid cap companies and 1.7% in small cap companies. Following is the basic information of the mutual fund.

Particulars of the Axis Midcap Fund
Commencement Date01st January 2013
Fund ManagerMr. Shreyash Devalkar
Assets under ManagementRs 1890.65 Crore
Fund TypeMid Cap Fund
Fund BenchmarkNifty Midcap 100 TRI
Expense Ratio2.39%

Advantages of Midcap Mutual Funds

Mid cap mutual funds utilizes and invest the investment corpus of investors in mid-sized companies. There are various reasons for gaining popularity of investment in Midcap Mutual Funds. Mid Cap Mutual funds are attractive and advantageous investments for the following reasons:

  • The risk associated with mid cap mutual fund is less as compared to investment in small cap mutual fund
  • The performance of mid cap mutual fund has exceeded than the performance of large cap mutual fund.
  • Liquidity of mid cap mutual fund is much more as compared to the liquidity of small cap mutual fund
  • Mid cap funds perform well in bullish market scenario and if wise financial decisions are taken then mid-cap funds can successfully sustain and outperform a bearish market.

Following is a sample illustration that represents the gaining popularity of mid cap mutual funds. The table indicates the performance and returns offered by mid cap mutual funds in 3 year and 5 year horizon.

Midcap Mutual FundReturns earned in 3 yearsReturns earned in 5 years
L&T Midcap Fund18.26%29.03%
HDFC Midcap Opportunity Fund14.84%26.00%
DSP Midcap Fund16.77%25.68%
Axis Midcap Fund11.17%26.10%

Things to be Consider by an Investors

Investment in stock and share market is subject to market risk as the performance of the mutual fund is totally dependent on the performance of the fund which is controlled by market fluctuations. Market volatility is one big factor that every investor must consider while investing in mutual funds. Following are few important things that every investor must consider before starting investment in mutual funds:

Financial Goal

Investment in mutual fund turns beneficial when it is done keeping in mind a definite financial goal like wedding, child education, foreign trip, retirement etc. A definite financial goal will keep the investor on track with dedicated savings and help achieve long-term financial goals.

Understanding Holding Timelines

For successful trading in mutual fund, every investor must understand one important aspect and that is for how long to hold a certain investment and in which mutual fund to invest in. Every type of mutual fund has their own set of risks associated with them so it is very important that every investor understands the duration of holding a mutual fund. This is because, holding any investment for less time might not earn profit while holding an investment for too long may result in losing money.

Selecting a proper investment tool

Investment in mutual fund can be done in two ways namely by investing lump sum amount in a particular mutual fund or starting weekly or monthly or quarterly SIP. With the SIP mode investors can invest in mutual fund with small amount. Selecting a proper mode of investment is of prime importance as it will help you in achieving your financial goals.

Compounding Power

Investment in mutual fund gains more returns because of the compounding effect it causes on the invested amount. When an investment is done for a longer time in a particular mutual fund then with rupee cost averaging benefit the market volatility affects less and the investment turns to be less risky. Thus the power of compounding results in better yield when investment is done for a longer period.

Market Risk

Lastly, every investor must know that market risk is inevitable and they will always exist. Mutual funds are considered as safe investment options as they are governed by SEBI. However, investment in any mutual fund must be done after reading the offer document carefully and then making an informed decision.

FAQs on Best Mid Cap Mutual Funds to Invest in 2019

Is it good to invest in midcap mutual fund?

Yes, investment in midcap mutual fund is advantageous for investors who have a high risk appetite. Investment in midcap mutual fund is beneficial for long term investments.

What are the best mid cap mutual funds?

The best mid cap mutual funds can be determined by the performance of the fund and underlying assets. Choosing the best mid cap mutual fund depends on the personal financial goals and risk tolerance of the investor.

What does Small Cap mean?

Small cap refers to young companies who have a comparatively small market capitalization but have great growth potential. While mid cap companies refer to comparatively experienced companies who have a market capitalization more than small cap companies but less than large cap companies.

What is large cap fund in mutual fund?

A Large cap fund in mutual fund refers to investing a large portion of investors corpus into trustworthy and reputed funds of large companies having large market capitalization.

What is mid cap mutual fund?

Mid Cap mutual fund invests a large portion of investors corpus into companies that have mid sized market capitalization. The market capitalization of these companies lies between large cap companies and small cap companies.

What is Mid Cap SIP?

SIP (Systematic Investment Plan) is a tool with which the investor’s can invest their money in mid cap mutual fund.

What are multi cap mutual funds?

Multi cap mutual fund is a diversified mutual fund that invests the money of the investor’s in stocks of companies across different market capitalization. The multi cap mutual fund portfolio comprises of companies having market capitalization of large cap, mid cap and small cap.

What is small cap and mid cap mutual funds?

A small cap fund refers to investment of investors corpus in young companies having small market capitalization while the mid cap mutual funds invests the money of the investors in relatively bigger companies having market capitalization more than small cap companies.

What is small cap, mid cap and large cap mutual funds?

Mutual Fund is an investment tool that invests the money of investors in stocks and shares of various companies. Small cap companies are young and new companies who are looking for expansion so small cap mutual fund refers to investment into such young companies. Similarly, mid cap funds invest the investor’s corpus in companies having medium market capitalization while large cap mutual funds invest the money in large sized companies having large capitalization.

What is small cap mutual fund?

Small cap mutual fund invests the collected investment corpus in young and new companies who are seeking aggressive expansion with the help of investment corpus.

What is the best small cap mutual fund?

Best Small cap mutual fund is typically a fund that has the highest growth potential and wish to expand their business aggressively.

What is the difference between large and small cap mutual funds?

The difference between large cap mutual funds and small cap mutual fund is that under large cap mutual fund the investment is done in large companies having large market capitalization while under small cap mutual funds the investment is done in young and new companies.

Which diversified mutual fund is best?

Multi cap mutual funds are most diversified mutual funds that invest the investment corpus in stocks of companies with different market capitalization thus mitigating the risk associated with the fluctuation of the market.

Which is best multi cap fund?

Best multi cap mutual fund is one which gives highest fund returns on the investments. The best multi cap mutual fund can be decided by investors depending upon their financial goals and needs.

Which is better large cap or midcap?

Large cap funds invest money in large companies having huge market capitalization. These companies are trustworthy, reputed and well-established. While mid cap funds invest in companies having medium market capitalization. Both large cap fund or mid cap fund are good investment portfolios however the choice solely depends upon the risk appetite of the investor.

Which large cap mutual fund is best?

Large Cap mutual fund invests the money in old and reputed companies. For choosing the best large cap mutual fund investors must keep a close eye on the companies involved in the fund.

Which Mid Cap Fund is best?

Mid Cap fund invests the money in companies having medium market capitalization. The choice of best mid cap mutual fund must be based by overlooking the performance of the fund and stocks trading under the fund.

Which mutual fund is best for SIP?

Systematic Investment Plan (SIP) is a tool with which investment in mutual fund can be done. Selecting the best SIP depends on the type of mutual fund which the investor wants to invest. The choice of the best mutual funds depends on the performance of the fund and the risk appetite of the investor.

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