CRISIL rates equity mutual funds based on various parameters and than comes up with ratings for these equity schemes. Here are 3 midcap equity mutual funds to buy, based on a "5-star" ratings from CRISIL. The rating agency has a very good track record and can be considered very credible. Investors can look to invest in these midcap cap equity mutual funds based on this rating.
Invesco India Mid Cap Fund
This fund has been rated as "5-star" by Crisil, which could make it a good mutual fund to buy. The fund invests the money in stocks of midcap companies, which means returns can be very volatile.
We would like to tell investors that they also need to be a little cautious and invest small amounts, preferably by way of Systematic Investment Plans in the fund.
The net asset value under the growth plan is Rs 79.76, while under the dividend option it is Rs 30.16. If you do not have lumpsum to invest, you can look at staggered investment whereby a small sum of Rs 1,000 can be considered for the purposes of SIP investments.
This fund is a very old fund and was launched way back in 2007. The 1-year returns from Invesco India Mid Cap Fund has been a stupendous 65%, while the 5-year returns on an annualized basis is lower at 17.38%.
Axis Midcap Fund
Axis Midcap Fund has not only been rated "5-star" by CRISIL, but a similar ratings had been accorded to it, by noted rating agency Value Research. This fund has always been among the top performing funds, which is one of the reasons why the assets under management is Rs 11,000 crores plus.
About 10 stocks in the portfolio form 34% of the holdings at Axis Midcap Fund. Among the stocks that that the fund holds in its portfolio includes names like Cholamandalam Finance and Investment, Voltas, Astral, PI Industries, Coforge, ICICI Bank etc.
This is among the better rated mutual funds to invest with a long term perspective in mind. The portfolio also is very strong with companies that have had a stellar track record.
Edelweiss Large & Mid Cap Fund
This fund has also been rated "5-star" by Crisil, but, it is not strictly a midcap fund. Edelweiss Large & Mid Cap Fund invests in both large cap and midcap funds, which is a good combination for equity mutual fund investors to invest in.
The one good thing about the Edelweiss Large & Mid Cap Fund is that it gives the fund manager the flexibility to look at both categories of investment, which is midcap and largecaps.
This fund's portfolio also looks sound to capture gains from rising markets as the portfolio includes names like ICICI Bank, HDFC Bank, Infosys, State Bank of India and Axis Bank.
Under the growth plan the fund has an NAV of Rs 48, which is a level investors will have to buy into.
Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.