The last one year has seen fantastic returns by all categories of mutual funds, be it small cap, midcap, multi cap or large cap equity funds. The 1 and 3 year returns from most equity mutual funds have been stellar to say the least. However, given the sharp run-up in the markets over the last 6 months, it is no longer going to be easy to generate stupendous returns. Here are a few midcap equity funds, that either have a 4 star or a 5 star rating from Crisil.
Invesco India Midcap Fund
Invesco India Midcap Fund is rated "5-star" by Crisil. The fund has generated a whopping returns of 56% in 1-year, while the three year returns are 12.23% and the 5-year returns 15.74% on an annualized basis.
An investment of Rs 10,000 in the SIP of the fund three years ago would have grown to Rs 4.99 lakhs in corpus today. Being a midcap equity fund a large proportion of the money is allocated to midcaps. Among the stocks in the company's portfolio are Voltas, Mphasis, Endurance Technologies and Grand Pharma. This is a midcap fund and hence returns can be extremely volatile. Given that the markets are run-up, and are rather expensive caution is advised. We are just informing our readers of the well rated midcap funds from Crisil and these are not our recommendations.
Tata Midcap Growth Fund
This fund has a 4-star rating from Crisil. The one year returns has been massive at 61 per cent. However, the 3-year returns from the fund has been around the 12 per cent mark and the 5 year returns the 15 per cent mark on an annualized basis.
One can invest in the SIP of the fund through a small sum of Rs 150 each month. The net asset value under the growth plan is slightly in excess of Rs 199.
The assets under management of the fund are around the Rs 1129 crores , which is not sizeable. The portfolio of the fund comprises names like Voltas, Cholamandalam, Navin Flourine, Jubilant Foodworks etc. The company has almost the entire amount invested, barring 1.5 per cent of the funds, which is in cash and cash equivalents.
Taurus Discovery Midcap Fund
This is a midcap fund that has been accorded a 4-star rating from Crisil. Like peers the returns from the fund has been fantastic in the short term. The 1 year returns from the fund is 57 per cent, while the 5 year returns are 16.76 per cent on an annualized basis.
If you are looking to buy the scheme under the growth plan the net asset value is currently Rs 62.64. However, caution is advised before investing large amounts, as the markets are barely a few per centage points from record highs. The portfolio of the fund includes names like Atul, Honeywell automation, Supreme Industries Tata Chemicals etc.
Ideally, the best way to go about investing in small and midcap funds would be the Systematic Investment Plan route. One can invest in this fund through the SIP route with a small sum of Rs 1,000. Please read our disclaimer on the website before investing in these funds.
About the author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.