Best mid cap mutual funds to invest in 2020 in India
Midcap Funds are those mutual funds that invest a larger portion of their funds in equity shares of mid-cap companies.
The Securities & Exchange Board of India or SEBI categorizes companies whose market capitalization is between the 101st and 250th position in the market as Mid Cap. Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.
Some of the characteristics of a midcap fund are as follows:
- Higher chances of growth compared to large caps
- Chances of getting outperformed by large caps in a weak economy.
- Chances of getting outperformed by small caps in a strong economy.
- Lower volatility compared to small caps, but higher compared to large caps.
- Suitable for investors with high investment horizon
- Suitable for investors with medium risk appetite
- Most of the stocks are highly liquid
TOP MID CAP FUNDS 2020
The following are the top-rated mid cap funds as per ZFunds scoring for the quarter ended 30th June 2020. The funds with the highest ZF Score (refer methodology here) are ranked at the top.
|Fund Name||ZF Score||AUM (in Rs. Crores)||1-Year Return||3-Year Return||5-Year Return|
|Axis Midcap Growth||6.89||5,867||16.36%||11.51%||8.44%|
|DSP Midcap Fund Growth||7.63||7,425||16.95%||5.46%||9.31%|
|ICICI Prudential MidCap Fund||7||1,740||3.07%||0.75%||4.20%|
1. Axis Midcap Growth
A Top-performing fund, Axis Midcap Fund has been a consistent performer since its inception.
The Axis Midcap Growth fund has been ranked as the top performer in various parameters like performance against benchmark, capture ratio, and risk-adjusted score as per ZFunds Ratings.
The fund has always been outperforming its benchmark as well as the category average returns by significant margins over the long as well as short periods.
An excellent fund for long term investments, it has a small exposure of 1.07% in Small-cap stocks.
- Rs. 10,000 invested in August 2015 would have been approx. Rs.15,000.
- Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 79,120.
2. DSP Midcap Fund
DSP midcap fund is one of the top-performing funds in the Mid Cap category. Just like the Axis Midcap, DSP Midcap has always been beating the returns of its benchmark & category average by significant margins over a long period of time.
The Fund has been one of the top performers in metrics like performance against benchmark, capture ratio, & risk-adjusted score. Also, the fund has a decent score in valuations.
Excellent choice for long term investment in the category. Has a small exposure of 8.87% in small-cap stocks.
- Rs. 10,000 invested in August 2015 would have been approx. Rs. 15,600.
- Rs. 1,000 invested in monthly SIP since August 2015 would have been approx. Rs. 73,610.
Even though the fund has not been a consistent outperformer in the previous 5-years, the low average Price-to-Earnings and Price-to-Book bring it to the top of the tables.
ICICI Prudential Midcap Fund has also ranked high in the metric of volatility. The Fund has the potential to provide high returns over a long period given its great valuation score & low volatility as per ZFunds Ratings.
- Rs. 10,000 invested in August 2015 would have been approx. Rs.12,300.
- Rs. 1,000 invested in monthly SIP since September 2015 would have been approx. Rs. 64,264.