Midcap stocks have been badly bruised in the last few months. In fact, they have under performed the broader markets by a distance. This has led to a sharp erosion in the value of some midcap funds. Here are a few midcap funds that you could buy from a medium to long-term perspective.
Aditya Birla Sunlife Midcap Fund
This fund has generated a return of almost -9.51 per cent in the last 1-year. However, the long-term return has been good with a 5-year returns of almost 10.11 per cent.
It's important to note that you are getting to buy the fund at almost 10 per cent lower, than it was a year back, which thus makes it attractive.
The fund has holdings in stocks like Teamlease Services, GFL, KEC International, RBL Bank etc. The net asset value under the growth plan of the fund is Rs 268.82. One can also do an SIP for a minimum sum of Rs 1,000.
Buy into the fund for the long-term to generate decent returns from this midcap fund.
HDFC Mid-Cap Opportunities Fund
HDFC Mid-cap Opportunities Fund has huge assets under management of Rs 22,600 crores. The fund like most peers has not been able to generate decent returns in the short term. In fact, the one year returns from the fund is -9.04.
However, the fund has generated decent long-term returns of almost 11.69 per cent in the last five years. The one good thing is that investors are likely to get to buy the units at extremely low rates when compared to a year back.
The fund has holdings in the stock of Cholamandalam Finance, Aarti Industries, Sundaram Fasteners, City Union Bank etc and Voltas. Those who wish to generate returns from a 3-year perspective, can buy into the fund.
L&T Midcap Fund
L&T Midcap Fund is another decent fund, if you are looking to invest for a period of 2-3 years. The fund has an asset size of Rs 5,000 crores, largely invested in good quality stocks. RBL Bank, City Union Bank and The Ramco Cements are some of the stocks that the fund has invested in.
Under the growth plan the net asset value is currently is Rs 124.22. The fund has given a return of -9.30 per cent in the last one year, while the 5 year returns have been 13.35 per cent.
The Fund has a 5-star rating from Value Research Online. The portfolio also looks solid, so as to help the L&T Midcap Fund generate decent long term returns.
DSP Midcap Fund
This is one fund that has limited the losses of the last one year to just -3.55. However, the funds 5-year returns has been a solid 12.78 per cent. Going ahead much would depend on the recovery of midcaps, which have been badly battered in the last one year. Those with a long-term perspective may buy into the fund with a long-term perspective in mind. DSP like most other midcap funds has a portfolio, with stocks that have a proven track record. Among the stocks include SRF, the Ramco Cements, HDFC Bank, City Union Bank and Supreme Industries.
Axis Midcap Fund
Axis Midcap Fund has been rated as 4-star by Value Research Online. The fund has managed to hedge its risk against the downfall of midcap stocks. Axis Midcap Fund has generated a negative returns of just 1.52, and is very limited when compared to most other funds.
The portfolio of the fund comprises stocks like Info Edge (India), City Union Bank and Gruh Finance among others.
The net asset value of the fund under the growth scheme is Rs 34.92. The minimum SIP under the fund is Rs 1,000 per month.