Mid cap funds have historically outscored large cap and flexi cap funds, indicating that they have the potential to triumph in the long run. According to SEBI, these funds invest in mid-cap firms with market capitalizations ranging from 100 to 250. Mid-cap equities will continue to profit from the growing economic trend, as fund managers acquire stocks of mid-sized firms with the potential to become large cap at the same time giving higher returns enough to cover your investment objective of more than 5 years. According to the statistics of AMFI, among Equity Oriented Schemes, Mid Cap funds saw a healthy inflow of Rs 1,350.97 Cr, with Net Assets Under Management of Rs 1,53,023.64 Cr, Average Net Assets Under Management of Rs 1,51,184.21 Cr, and 76,84,684 portfolios as of September 30th, 2021.
The data suggests the possible future performance, and investing in these funds might be advantageous if you wish to earn better returns than large cap funds while minimising your risk against small cap funds in the current market scenario as the large cap funds have only achieved a positive net inflow of Rs 13.90 Cr and small cap funds have witnessed a negative outflow of Rs -248.73 Cr in the previous month. As a consequence, we have chosen two mid-cap funds that are rated 5-star by Value Research and have a tremendous one-year gain.
PGIM India Midcap Opportunities Fund Direct-Growth
According to the data of Groww, PGIM India Midcap Opportunities Fund Direct-Growth returns for the previous year are 99.88 percent, and since its debut, it has generated 22.38 percent average annual returns. The fund's expense ratio is 0.32 percent, which is lower than that of most other funds in the mid-cap category. The fund's equity allocation is strongly concentrated across the engineering, financial, healthcare, construction, and services sectors.
Mphasis Ltd., Ashok Leyland Ltd., Voltas Ltd., Max Financial Services Ltd., and JB Chemicals & Pharmaceuticals Ltd. are the fund's top five holdings. According to its past performance, the fund received a 5-star rating from Value Research and is actively doing well in terms of generating returns. The fund has a 94.5 percent equity holding and a 6.5 percent debt exposure and as of October 14, 2021 it has a Net Asset Value (NAV) of Rs 49.03 and AUM of Rs 3,060.29 Cr.
The product has an exit load of 0.5 percent if units more than 10% of the investment value are redeemed within 90 days of the purchased date. SIPs in this fund can be commenced with as little as Rs 1000 per month.
Axis Midcap Direct Plan-Growth
Axis Midcap Direct Plan-Growth returns for the last year are 74.31 percent, and it has generated 22.44 percent average annual returns since inception according to the data of Groww. The fund's expense ratio is 0.49 percent, which is lower than that of most other funds in the same category.
The fund's equity exposure is spread across the Financial, Technology, Chemicals, Services, and Healthcare sectors. Cholamandalam Investment & Finance Co. Ltd., NIIT Technologies Ltd., MindTree Ltd., Bajaj Finance Ltd., and Astral Poly Technik Ltd. are the fund's top five holdings.
Value Research has rated the fund 5-star, indicating its past performance excellence in terms of generating risk-adjusted returns. The fund has a 94.90 percent equity holding and a 4.7 percent debt exposure, with a Net Asset Value (NAV) of Rs 81.54 and an AUM of Rs 15,394.86 Cr as of October 14, 2021.
If units of more than 10% of the investment value are redeemed within one year of the purchase date, the fund carries a 1% exit load. SIPs can be started in this fund with an amount of Rs 500 only.
2 Mid Cap Funds For SIP In 2021 Based On 5-Star Rating of Value Research
The performance of the two above-mentioned mid-cap funds is illustrated below which you can consider for starting SIP in 2021 relying on Value Research's 5-star rating.
|Funds||1 mth returns||6 mth returns||1 Yr returns||3 Yr returns||5 Yr returns||Annualized returns since inception|
|PGIM India Midcap Opportunities Fund Direct-Growth||5.30%||44.72%||99.88%||40.15%||22.77%||22.38%|
|Axis Midcap Direct Plan-Growth||5.70%||37.57%||74.31%||31.92%||23.29%||22.44%|
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