Mid-cap companies are listed entities that rank between 101 and 250 in terms of market capitalisation. Such companies are usually in the growth phase of the business cycle and have the potential to become multibaggers in the future. Mutual funds that invest in such companies are known as mid-cap funds. In India, there are plenty of best-performing mid-cap mutual funds that have delivered stunning returns. Here’s a detailed overview of a few of them.
Launched in 2001, the Quant Mid Cap Fund currently has a total Assets Under Management (AUM) of about ₹1,550 crores. The mutual fund invests in some of the top mid-cap companies across 10 different sectors. Some of the top sectors that this fund has invested in include financial services, consumer defense, industrials and healthcare.
Although the expense ratio of the fund is slightly on the higher side at 2.68, the returns that it generates more than makes up for it. In the past three-year time frame, the mutual fund has generated 37.2% returns, which makes it one of the best-performing mid-cap mutual funds in India. As of March 16, 2023, the NAV of the Quant Mid Cap Fund was ₹126.16.
Launched in 2013, the PGIM India Mid Cap Opportunities Fund has invested in major sectors like industrials, financial services, consumer cyclical and healthcare. Apart from these, it has also invested in 6 other sectors. Presently, the AUM of the fund is around ₹7,707.7 and the expense ratio is 1.94.
Some of the companies in the fund’s portfolio include Clearing Corporation Of India, Cummins India, Kajaria Ceramics and Ashok Leyland. Over the past three-year period, the PGIM India Mid Cap Opportunities fund has generated returns to the tune of 34.3%. The NAV of this mutual fund was ₹41.47 as of March 16, 2023.
Introduced in 2005, the SBI Magnum Mid Cap Fund is one of the largest mid-cap mutual funds with an AUM of around ₹8,436 crores. The fund primarily invests in consumer cyclical and financial services sectors, where it has allocated almost 35.1% and 15.2% of its total AUM. The remaining funds have been spread out across 8 other key sectors.
The SBI Magnum Mid Cap Fund has a slightly high expense ratio of 2.01. However, at 30.2%, the returns that it has produced over the previous three-year period have been nothing short of stellar. This mid-cap fund from SBI is another one of the best-performing mid-cap funds in the country that you can consider investing in. As of March 16, 2023, the NAV of the mutual fund was ₹142.20.
Launched in 2007, the Edelweiss Mid Cap Fund has a total AUM of about ₹2530.9 crores, which it has invested across 9 different sectors. Industrials, financial services, consumer cyclical and basic materials make up the top 4 sectors in terms of asset allocation.
The expense ratio of the Edelweiss Mid Cap Fund is around 2.12, which is slightly on the higher side. The three-year returns, however, are also high at around 27.3%. The NAV of this mid-cap mutual fund was ₹50.09 as of March 16, 2023.
Launched in 2014, the Motilal Oswal Midcap 30 Fund is among the best-performing mid-cap mutual funds in India. Investing predominantly in sectors like consumer cyclical, financial services and industrials, the fund has companies like Tube Investments Of India, Campus Activewear and Cg Power & Industrial Solutions in its portfolio.
In addition to the above, the Motilal Oswal Midcap 30 Fund also invests in 7 other sectors. As of March 16, 2023, the AUM of the fund is ₹3,769 crores, whereas the NAV is ₹49.43. Over the past three-year period, the mutual fund delivered returns of about 26%.
These are 5 of the best-performing mid-cap funds in India that you can consider investing in. The high potential for capital appreciation makes mid-cap funds great investment options. However, they do carry a significant amount of risk, which is something that you need to account for when investing in them.
Now, before you go ahead and invest in mid-cap funds or any other mutual funds for that matter, make sure you have an active demat account. If you don’t have one, you can instantly open a demat account and a trading account for free by visiting the website of Motilal Oswal.