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5 High Rated & Best Performing Mid Cap Funds In 2021 Based On 1 To 5 Year Returns

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For mutual fund investors with a higher risk appetite and a long-term financial goal of more than 7 years, investing in best-performing mid-cap mutual funds is preferred. These funds allocate 65 percent of their overall funds to equity and equity-related securities of mid-sized companies that are classified between 101 and 250 based on their total market cap. As a result, these funds are less riskier than small-cap funds and have the potential to generate higher and inflation-beating returns than large cap funds over the long term.

 

We have seen a drastic surge in the mid cap fund category in the last 1 and half years, and as a result, investors can start SIP in top-rated and best performing mid cap funds by keeping innate uncertainty and risk-return assumption in mind. However, by considering their ratings and 1 to 5 years returns, here we have picked the 5 best mid cap funds for you to start SIP in 2021.

PGIM India Midcap Opportunities Fund Direct-Growth

PGIM India Midcap Opportunities Fund Direct-Growth

PGIM India Midcap Opportunities Fund Direct-Growth (PGIM India Midcap Opportunities Fund Direct-Growth) is a Mid Cap mutual fund scheme established by PGIM India Mutual Fund in 2013 and thus has been in existence for the last 7 years. The fund's expense ratio is 0.35 percent, which is less than the expense ratios charged by most other funds in the same category. According to Value Research, PGIM India Midcap Opportunities Fund Direct-Growth returns for the last year were 90.39 percent, and from its inception, it has generated an average annual return of 21.03 percent.

The fund has its equity sector allocation across financial, healthcare, technology, engineering, and construction sectors. Max Healthcare Institute Ltd., NIIT Technologies Ltd., Max Financial Services Ltd., Muthoot Finance Ltd., and Mphasis Ltd. are the fund's top five holdings. The fund has Rs 2,383.38 crore in assets under management (AUM) and a current NAV of Rs 43.60 as of August 18, 2021. Value Research has given the fund a 5-star rating, and SIPs can be started with as little as Rs 1000 per month. For units worth more than 10% of the investment, a 0.5 percent redemption fee will be applied if the investment is redeemed within 90 days.

Axis Midcap Direct Plan-Growth
 

Axis Midcap Direct Plan-Growth

Axis Midcap Direct Plan-Growth is a mid cap fund from the fund house Axis Mutual Fund. This fund has been in force around for 8 years, having been established in 2013. It is a medium-sized fund of its category and has a 0.51 percent expense ratio, which is less than most other funds of the same category. According to Value Research, Axis Midcap Direct Plan-Growth returns over the last year have been 60.16 percent, with an average annual return of 21.16 percent since inception. Financial, Technology, Chemicals, Consumer Durable, and Healthcare sectors make up the fund's equity sector allocation.

NIIT Technologies Ltd., Cholamandalam Investment & Finance Co. Ltd., ICICI Bank Ltd., Voltas Ltd., Crompton Greaves Consumer Electricals Ltd. are among the fund's top five holdings. The fund's net asset value is Rs 72.17 as of August 18, 2021, and it currently has Rs 13,834.27 crore in assets under management. Investors with a high-risk appetite can start SIP in this fund with a minimum monthly contribution of Rs 500. For units worth more than 10% of the investment, the fund will incur a 1% exit load if they are redeemed within a year.

Edelweiss Mid Cap Direct Plan-Growth

Edelweiss Mid Cap Direct Plan-Growth

Edelweiss Mid Cap Direct Plan-Growth is a mid cap scheme from the fund house Edelweiss Mutual Fund that was established in the year 2013 and has been in operation for the last 8 years. It is a medium-sized fund of its category with a 0.64 percent expense ratio, which is less than most other mid cap funds. According to Value Research, Edelweiss Mid Cap Direct Plan-Growth returns over the last year have been 72.99 percent, with an average annual return of 22.14 percent since its debut.

The fund's equity sector allocation is primarily allocated across the financial, construction, engineering, healthcare, and chemical sectors. Mphasis Ltd., SRF Ltd., Shriram Transport Finance Co. Ltd., Crompton Greaves Consumer Electricals Ltd., and Odisha Cement Ltd. are the fund's top five holdings. As of August 18, 2021, the fund's net asset value is Rs 51.94, and it currently manages Rs 1,599.94 crore in assets under management. With a minimum monthly contribution of Rs 500, investors can commence a SIP in this fund. If units are redeemed within 12 months, the fund imposes a 1% exit load.

Kotak Emerging Equity Fund Direct-Growth

Kotak Emerging Equity Fund Direct-Growth

This fund was launched by the fund house Kotak Mahindra Mutual Fund and thus has been in existence for the last 8 years. It is a medium-sized fund of its category, with an expense ratio of 0.57 percent, which is lower than the expense ratios charged by most other funds in the same category. According to Value Research, Kotak Emerging Equity Fund Direct-Growth returns over the last year have been 72.06 percent, with an average annual return of 21.35 percent since its debut. Chemicals, Engineering, Financial, Construction, and Healthcare are among the fund's equity sector allocations. Supreme Industries Ltd., Persistent Systems Ltd., Coromandel International Ltd., FAG Bearings India Ltd., and The Ramco Cements Ltd. are the fund's top five holdings.

The assets under management (AUM) of Kotak Emerging Equity Fund Direct-Growth are worth Rs 15,193.40 crores (AUM). As of August 18, 2021, the fund's net asset value is Rs 74.61. Investors can start a SIP in this fund with a minimum monthly investment of Rs 1000. For units worth more than 10% of the investment, a 1% exit load will be levied if redeemed within 1 year.

Nippon India Growth Fund Direct-Growth

Nippon India Growth Fund Direct-Growth

The fund house Nippon India Mutual Fund launched Nippon India Growth Fund Direct Growth in the year 2013 and thus this fund has been in existence for the last 8 years. It is a medium-sized fund of its category with a 1.21 percent expense ratio, which is much higher than the other funds in the same category. According to Value Research, Nippon India Growth Fund Direct-Growth returns over the last year have been 65.87 percent, and it has generated an average annual return of 17.38 percent since its inception. Financial, Services, FMCG, Automobile, and Engineering sectors are all represented in the fund's equity sector allocation.

Varun Beverages Ltd., Tube Investments Of India Ltd., L&T Technology Services Ltd., Ashok Leyland Ltd., and Max Financial Services Ltd. are the fund's top five holdings. As of August 18, 2021, Nippon India Growth Fund Direct-Growth has Rs 11,107.41 crores in assets under management (AUM). The fund's net asset value is currently Rs 2,022.47. SIP in this fund can be started with a minimum monthly contribution of Rs 500, and the fund carries a 1% exit load if units are redeemed within one month of the investment.

Best Mid Cap Mutual Funds To Invest In 2021

Best Mid Cap Mutual Funds To Invest In 2021

Here are the top performing mid cap funds in 2021 in terms of ratings and past returns.

Funds1 Year Returns3 Year Returns5 Year ReturnsRating by Value ResearchRating by Morningstar
PGIM India Midcap Opportunities Fund Direct Growth 90.39% 28.35% 21.38% 5 star 5 star
Axis Midcap Direct Plan Growth 60.16% 22.08% 21.06% 5 star 5 star
Edelweiss Mid Cap Direct Plan Growth 72.99% 20.11% 18.75% 4 star 4 star
Kotak Emerging Equity Fund Direct Growth 72.06% 20.81% 18.45% 4 star 4 star
Nippon India Growth Fund Direct Growth 65.87% 20.01% 17.53% 4 star 3 star

Should you invest?

Should you invest?

Because the bulls ruled the stock market last year, mid-cap funds have delivered outstanding results and many funds have outperformed their large-cap rivals, according to historical data. But this factor should not only be your consideration to invest in if you have a higher risk appetite and are ready to invest for the long-term through the SIP route to gain the benefit of the power of compounding and reduce the influence of market volatility. Investing in mid cap funds for more than 5 years is only recommended if you want to beat inflation in terms of returns.

Due to the possibility of higher market volatility in the near future, investing in mid-cap funds for short-term financial goals can be riskier. Last but not least, before investing in mid cap funds, investors should consider their investment goals, fund performance, risk, and the expense ratio, but as a wise investor, you should only redeem your units once you have met your financial objectives.

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

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