Invest in Best Mid-Cap Mutual Funds in India 2024
Discover the best performing Mid Cap Funds in India. Learn the risks, key benefits, and who should invest along with expert insights.
What are Mid Cap Funds?
Mid Cap Funds are equity mutual funds that invest primarily in mid-sized companies, typically those listed between 101st and 250th in terms of market capitalization. Mid-cap companies have high potential for growth but come with high risks. They aim to capitalize on the growth of the company often to the benefit of investors.
Who Should Invest in Mid Cap Funds?
- Growth-Oriented Investors: If you are looking for growth, then mid-cap fund is the one that is suited to you
- Moderate to High-Risk Takers: Investors who are willing to take risk and wait for a period can invest in this fund
- Long-Term Investors: Investors with a long-term investment horizon, typically 5-10 years to neutralize market fluctuations
- Diversified Portfolio Seekers: Anyone who wishes to have a diverse portfolio typically consisting of large, small, and mid cap funds
- Experienced Investors: If you are good at projecting the growth of a company and have sufficient knowledge about market movements, then you can try investing in this.
Top Performing Mid Cap Funds
| Fund Name | Category | Risk | 6-Month Return (%) | 1-Year Return (%) | Rating | Fund Size (Cr.) |
|---|---|---|---|---|---|---|
| Motilal Oswal Midcap Fund | Mid Cap | Very High | 32.26% | 65.08% | ₹5,126.27 | |
| ITI Mid Cap Fund | Mid Cap | Very High | 33.37% | 72.62% | ₹5,985.0 | |
| Mahindra Manulife Mid Cap Fund | Mid Cap | Very High | 28.69% | 64.22% | ₹4,287.2 | |
| HDFC Mid Cap Opportunities | Mid Cap | Very High | 23.00% | 52.55% | ₹4,705.69 | |
| Nippon India Growth Fund | Mid Cap | Very High | 23.68% | 58.64% | ₹4,308.38 |
Factors to Consider While Investing in Mid Cap Funds
- Historical Performance: Always consider the historical returns, as these are invaluable data that can give you a projection of how this fund will perform for the tenure you decide to stay invested
- Expense Ratio: Choose the one with lower expense ratio, as it will lead to better returns
- Fund Manager’s Expertise: Evaluate the experience and track record of the fund manager in managing this kind of funds. Conduct a thorough research on the fund manager’s track record and experience
- Risk profile of the fund: Analyse whether the risks associated with the fund matches with your risk taking ability
Major Benefits of Mid Cap Funds
- High Growth Potential: Mid-sized companies often have tremendous growth opportunities, and during their journey they have potential to fetch big returns for their investors
- Diversification: It provides a diversified portfolio by investing in a broad range of mid-cap companies across different industries so that it can withstand any kinds of economic shock.
- Low Investment: You can start investing with an amount as low as Rs. 500 in mid cap funds. It diversifies your investment across various companies to prevent concentration risk on one particular sector
- Balance Between Risk and Return: It acts as a perfect middle point between guaranteed and low risk large cap funds and high profit and high growth small cap funds
- Long-Term Wealth Creation: Ideal for long-term investors looking to build a fortune for a considerable chunk of time
Risks Involved in Mid Cap Funds
- Market Risk: It is susceptible to market volatility and economic downturns just like any other equity product
- Liquidity Risk: Mid-cap stocks may have lower liquidity compared to large caps, making it difficult to sell shares easily. If you are looking to liquidate mutual funds during periods of economic stagnancy then you may have to sell it at a reduced prize
- Fees and charges: The mid-cap funds have higher fees and charges compared to large cap funds as additional research is required in identifying them
- Performance Dependence: Highly dependent on the fund manager’s ability to pick winning stocks.
Frequently Asked Questions (FAQs) about Mid Cap Funds
1. What are Mid Cap Funds?
Mid Cap Funds are equity mutual funds that invest in mid-sized companies, offering high returns than large cap funds. They are also more risky compared to investing in large cap funds
2.Who should invest in Mid Cap Funds?
People who are have high risk tolerance and patience to wait for the growth of the companies can invest in Mid cap funds
3.What are the benefits of investing in Mid Cap Funds?
Benefits include high growth potential, fund diversification, and those who are looking for long term health creation can invest in this fund.
4.Is it safe to invest in Mid Cap Funds?
If you are willing to tolerate risks,include market risk, liquidity risk, higher volatility, and complete dependence on the fund manager’s stock-picking ability, then you can interest for this
5.How do I choose the right Mid Cap Fund?
You can contact Fincover.com through our social media posts or email us at support@fincover.com and we have in-house MF experts who can guide you to poick the best mid cap fund tailored to your goals