5 Top-performing Mid Cap Mutual Funds in the Last 5 Years
July 10, 2023 Mutual Fund
The Mid Cap Mutual Fund category turned out to be among the top performers in the diversified equity mutual fund space in the last 5 years. In the last 5 years, the Mid Cap Mutual Fund category generated average returns at a compounded annualised growth rate (CAGR) of 16.9%, while the Large Cap Mutual Fund category delivered returns at a CAGR of 13.3%.
There are currently 24 schemes in the Mid Cap Mutual Fund category that have been in existence for at least 5 years. All these schemes generated double-digit returns in the last 5 years. The top-performing Mid Cap Mutual Fund registered a growth at a CAGR of 23% during this period.
[Read: Market at All-time High: Is This a Good Time to Invest in Mid Cap and Small Cap Mutual Funds?]
How various categories of equity mutual funds performed over the years
Past performance is not an indicator of future returns
Data as of July 06, 2023
(Source: ACE MF, PersonalFN Research)
What are Mid Cap Mutual Funds?
The Securities and Exchange Board of India (SEBI) defines Mid Cap Mutual Fund as an ‘open-ended equity scheme that invests a minimum of 65% of its total assets in equity and equity-related instruments of mid-cap companies’. Mid-cap companies are typically defined as companies ranking from 101st to 250th in terms of full market capitalisation.
Mid Cap Mutual Funds have the potential to deliver superior returns because mid-sized companies are usually in their growth phase. Notably, mid-cap companies have better access to capital and various resources when compared to small-caps but fewer opportunities as compared to large-caps. Their management team is also stronger than that of small-caps and they adapt to new trends with better ease. They hold the potential to become the large-caps of tomorrow.
However, do note that since Mid Cap Mutual Funds predominantly invest in emerging/niche companies and sectors, the risk involved is higher compared to Large Cap Mutual Funds and Large & Mid Cap Mutual Funds but lower compared to Small Cap Mutual Funds.
In this article we will look at the 5 top-performing Mid Cap Mutual Funds based on the last 5 year returns that multiplied investors’ wealth.
Growth of Rs 1,00,000 if invested in Quant Mid Cap Fund 5 years back
Past performance is not an indicator of future returns
Data as of July 06, 2023. Direct plan – Growth option considered
(Source: ACE MF, PersonalFN Research)
Quant Mid Cap Fund was launched in February 2001 and currently has an AUM of Rs 1,973 crore. In the last five years, Quant Mid Cap Fund generated returns at a CAGR of 23%, the highest in the category. An investment of Rs 1,00,000 in Quant Mid Cap Fund five years back would have now appreciated to Rs 2,81,749. Quant Mid Cap Fund is co-managed by Mr Sanjeev Sharma, Mr Vasav Sehgal, and Mr Ankit Pande. In terms of stock holdings, Quant Mid Cap Fund has a higher allocation to Reliance Industries (9.5%), HDFC Bank (8.5%), Punjab National Bank (6.3%), The Indian Hotels Company (5.8%), and Tata Communications (5.3%).
Click here to read our detailed analysis on Quant Mid Cap Fund.
PGIM India Midcap Opportunities Fund
Growth of Rs 1,00,000 if invested in PGIM India Midcap Opportunities Fund 5 years back
Past performance is not an indicator of future returns
Data as of July 06, 2023. Direct plan – Growth option considered
(Source: ACE MF, PersonalFN Research)
PGIM India Midcap Opportunities Fund was launched in December 2013 and currently has an AUM of Rs 8,549 crore. In the last five years, PGIM India Midcap Opportunities Fund generated returns at a CAGR of 21.6%, outpacing the benchmark by around 4 percentage points. An investment of Rs 1,00,000 in PGIM India Midcap Opportunites Fund five years back would have now appreciated to Rs 2,66,299. PGIM India Midcap Opportunities Fund is co-managed by Mr Vinay Paharia and Mr Vivek Sharma, while Mr Puneet Pal manages the debt investment of the scheme. In terms of stock holdings, PGIM India Midcap Opportunities Fund has a higher allocation to Jubilant FoodWorks (3.4%), Cholamandalam Investment & Finance Company (3.1%), Tube Investments of India (3.1%), Timken India (3.1%), and Persistent Systems (3%).
Click here to read our detailed analysis on PGIM India Midcap Opportunities Fund.
Growth of Rs 1,00,000 if invested in SBI Magnum Midcap Fund 5 years back
Past performance is not an indicator of future returns
Data as of July 06, 2023. Direct plan – Growth option considered
(Source: ACE MF, PersonalFN Research)
SBI Magnum Midcap Fund was launched in March 2005 and currently has an AUM of Rs 10,145 crore. In the last five years, SBI Magnum Midcap Fund generated returns at a CAGR of 19.6%, outpacing the benchmark by around 2 percentage points. An investment of Rs 1,00,000 in SBI Magnum Midcap Fund five years back would have now appreciated to Rs 2,44,821. SBI Magnum Midcap Fund is co-managed by Ms Sohini Andani. In terms of stock holdings, SBI Magnum Midcap Fund has higher a allocation to CRISIL (5.2%), Schaeffler India (4.8%), Tube Investments of India (4%), Page Industries (3.7%), and Carborundum Universal (3.5%).
Click here to read our detailed analysis on SBI Magnum Midcap Fund.
Growth of Rs 1,00,000 if invested in Nippon India Growth Fund 5 years back
Past performance is not an indicator of future returns
Data as of July 06, 2023. Direct plan – Growth option considered
(Source: ACE MF, PersonalFN Research)
Nippon India Growth Fund was launched in October 1995 and currently has an AUM of Rs 16,353 crore, making it one of the oldest and largest schemes in the category. In the last five years, Nippon India Growth Fund generated returns at a CAGR of 19.6%, outpacing the benchmark by around 2 percentage points. An investment of Rs 1,00,000 in Nippon India Growth Fund five years back would have now appreciated to Rs 2,44,511. Nippon India Growth Fund is co-managed by Mr Rupesh Patel, Mr Sanjay Doshi, Mr Dhrumil Shah, and Mr Tejas Sheth. In terms of stock holdings, Nippon India Growth Fund has a higher allocation to AU Small Finance Bank (3.8%), Cholamandalam Finance Holdings (3.7%), Varun Beverages (3.1%), Power Finance Corporation (2.9%), and Persistent Systems (2.4%).
Growth of Rs 1,00,000 if invested in Motilal Oswal Midcap Fund 5 years back
Past performance is not an indicator of future returns
Data as of July 06, 2023. Direct plan – Growth option considered
(Source: ACE MF, PersonalFN Research)
Motilal Oswal Midcap Fund was launched in February 2014 and currently has an AUM of Rs 4,508 crore. In the last five years, Motilal Oswal Midcap Fund generated returns at a CAGR of 19.4%, outpacing the benchmark by around 2 percentage points. An investment of Rs 1,00,000 in Motilal Oswal Midcap Fund five years back would have now appreciated to Rs 2,42,398. Motilal Oswal Midcap Fund is managed by Mr Niket Shah. In terms of stock holdings, Motilal Oswal Midcap Fund has a higher allocation to Tube investments of India (9.8%), Zomato (9%), Persistent Systems (6.8%), Coforge (6.6%), and KPIT Technologies (6.5%).
Note: This write-up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.
This article first appeared on PersonalFN here
