2 Best Rated Mid-Cap Mutual Fund SIPs, Up to 126% Returns In 5 Years: Crisil

Mutual fund lumpsum or SIP investments are chosen by investors who are comfortable with risk factors, involved with the equity markets. After the Union Budget, 2022, Indian equity markets started to rally slowly, however, at the end of January, the stock market went much bearish with anticipations of an interest rate hike in the USA. So, to stay put in the very volatile equity markets, investors should check the portfolio thoroughly, to select the mutual funds for investments.

Mid-cap mutual fund rationale

A mid-cap fund SIP will pool most of its investment in the stocks of mid-cap companies. However, these funds also have a small section in the other large-cap and small-cap funds. A mid-cap company means its market capitalizations will be around $2 billion - $10 billion. The rationale of mid-cap investment is providing a good return to the investors along with the stocks' security. A mid-cap stock will give better returns in the near term rather than large-cap funds, while they give better security than small-cap funds. Additionally, the mid-cap stocks are established companies in the equity markets, so the risk factor is lesser than small-cap funds.

In this article portfolios of 2 mid-cap mutual fund SIPs, top-rated by rating agency Crisil, have been discussed.

1. PGIM India Midcap Opportunities Fund - Direct Plan-Growth

PGIM India Midcap Opportunities Fund - Direct Plan's NAV stood at Rs. 48.85, and its fund size is Rs. 4069.76 Crore. The Expense ratio is 0.40%, and the category average is 0.90%. This fund has been rated by Crisil with 5 star. PGIM India Midcap Opportunities Fund - Direct Plan's absolute returns of SIP has the most lucrative in the long-term. In the last 1 year return stood at 22.69%, in the last 2 years it has fetched 78.16% returns, in the last 3 years it has fetched 108.07% returns, and in the last 5 years, it has fetched 126.89% returns. In the past 2 years, this Fund's annualized returns of SIP stood at 66.81%.

This Fund's Equity Holding is 94.97%, and 5.03% is in other sectors. This fund's Large Cap Investments are 9.89%, Mid Cap Investments are 42.07%, Small Cap Investments are 31.68%, and 11.33% investments are allocated in other funds. The top 5 equity holdings of the fund are, Mphasis Ltd. (Computers - software), Coforge Ltd. (Computers - software), ICICI Bank, J.b. Chemicals & Pharmaceuticals Ltd., and ABB India Ltd. (Power equipment).

2. Baroda Mid-cap Fund - Plan B (Direct) - Growth

Baroda Mid-cap Fund - Plan B (Direct) Fund's NAV stood at Rs. 19.37, and its fund size stood at Rs. 95.26 Crore. The Expense Ratio is 1.64%, while the category average is 0.90%. This fund has also been rated by Crisil with 5 star. This Fund's absolute returns of SIP are quite high. In the last 1 year return stood at 21.74%, in the last 2 years it has fetched 62.32% returns, in the last 3 years it has fetched 78.33% returns, and in the last 5 years, it has fetched 88.86% returns. In the past 2 years, the Baroda Mid-cap Fund - Plan B (Direct)'s annualized returns of SIP stood at 54.35%.

The top 5 equity holdings of the fund are, Minda Industries Ltd. (Auto ancillaries), Persistent Systems Ltd. (Computers - software), Ipca Laboratories Ltd., Fortis Healthcare, and Bharat Electronics Ltd. This Fund's Large Cap Investments are 5.09%, Mid Cap Investments are 42.94%, Small Cap Investments are 39.38%, and 8.14% in other funds. This fund's Equity Holding is 95.55%, and 4.45% is involved in other sectors.

Performance Comparison

Both in the short term and long term, the PGIM India Midcap Opportunities Fund - Direct Plan's returns are the best. In addition to that, considering fund size and Expense Ratio, the mentioned fund is staying above the list. With a better fund size, the PGIM India Midcap Opportunities Fund is better-secured, while a lower-Expense Ratio can offer you better profitability. However, the unit price or NAV is lower in the Baroda Mid-cap Fund - Plan B (Direct) Fund. So, you can obtain more units of this fund with the same amount of money. Both of these funds are top-rated by Crisil.

Disclaimer

Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.

(Data mentioned as on February 2, 2022)