There has been a traction in SIP folios but the fund you start a SIP in should be capable of meeting your long term financial goal. So, here as we suggest some large and mid cap funds, we should first know what these funds are and who should be investing in these funds.
What are large and mid cap funds?
The AMCs or fund houses in such kind of funds distribute funds between large and mid cap companies. There is mandate as per which 70% of the funds are invested to large and mid cap stocks. As they have an exposure to even the mid cap stocks they are higher on risk as mid cap companies are typically in the growth phase and may take time to yield return for its investors.
Who should invest in large and mid cap funds?
Ideally mutual funds are a better set of investment via the SIP route suits investors who cannot time the market and this typical class will be suitable for investors with considerably higher risk appetite and time horizon of at least 5 years. These go a long way in meeting long term goals including child's education, early retirement as well as buying a house. The long term is a must as mid caps show exponential performance only in the long haul.
The benefit that comes with investing in large and mid cap funds is that these funds show consistent performance even in tough or weak market conditions and therefore you can secure stable returns.
Top 5- Star Rated Large and Mid cap funds by Morning Star
Morningstar is highly credible and the rating is done given the past performance based on a number of criteria, so the past performance does not confers to a similar performance in the future course of time.
The rating agency ranks mutual fund on a scale of one to 5 stars, wherein 5-star rated fund is the best performing. The funds are ranked considering adjustments for risks as well as costs in comparison to funds within the same category. Each fund receives separate ratings for three-, five- and 10-year periods, which it combines into an overall rating.
|Large and Mid cap fund||Morning Star Rating||SIP performance 5-years|
|Canara Robeco Emerging Equities-Growth||5-Star Rating||23.31%|
|Edelweiss Large and Mid cap fund-Direct Plan Growth||5-Star Rating||23.47%|
|Kotak Equities Opportunities Direct Growth||5-Star Rating||22.54%|
|LIC MF Large and Mid cap Direct G||5-Star Rating||22.14%|
|Mirae Asset Emerging Bluechip Fund-G||5-Star Rating||26.26%|
|Principal emerging Bluechip Fund||5-Star Rating||22.26%|
The rating signifies how the mutual funds have performed during a certain time and it is not a guarantee of future performance. Note poor rated mutual funds may also perform good in case the market mood turns positive or the stocks or other securities invested into are performing good.