Markets have done reasonably well in the last 1-year. Over the last few years, midcap stocks have been all over the place. However, some equity midcap mutual funds have done very well and have generated upto 24 per cent returns in the last one year. Here are 7 such midcap mutual funds.
1. Kotak Emerging Equity – Direct Plan
This fund has generated stupendous returns of 24.42 per cent in the last one year. On a longer term period of 7-years also, the fund has generated very good returns of almost 19 per cent. An SIP of Rs 10,000 done each month over the last 12- months would be worth Rs 1.37 lakhs today.
Kotak Emerging Equity Fund currently has 68 stocks in its portfolio, with top 10 stocks accounting for 31 per cent of the portfolio.
Among the midcap stocks in the portfolio of the fund include names like Supreme Industries, Coromandel International, PI Industries, The Ramco Cement etc.
The NAV under the dividend plan is currently Rs 29. It's important to note that from the next financial year, dividends from mutual funds would be subject to tax in the hands of the investors.
2. Motilal Oswal Midcap 30 Fund - Regular Plan
This is another fund that has generated solid returns over the last 1-year. The Motilal Oswal Midcap 30 Fund - Regular Plan has given a return of 22.91 per cent over the last one year. This is fantastic returns by any stretch. The fund is an open ended scheme with assets under management of nearly Rs 1,800 crores. Investors investing in the fund have a moderately high risk.
The fund has investment in the stock of City Union Bank, Voltas, Jubilant Foodworks, AU Small Finance Bank etc.
We wish to inform readers that investment in midcap funds are risky, as compared to large cap funds, which tend to be less volatile. The minimum investment through the SIP route is Rs 500 and in multiples of Rs 500 thereof.
3. Tata Midcap Growth Fund Regular Plan
The Tata Midcap Growth Fund Regular Plan has also been a star performer in the last one year. The fund has generated a 1-year returns of 20.08 per cent. You can invest in the fund with a minimum sum of Rs 500 and thereafter a sum of Rs 150 per month would be necessary to invest by way of Systematic Investment Plans.
The assets under management of the Tata Midcap Growth Fund Regular Plan is not very great at around Rs 773 crores. The fund has holdings in quality stocks like Bata India, PI Industries, Voltas, United Breweries, City Union Bank and ICICI Bank. It is advisable to have a long-term view, when investing in equity mutual funds. The risk in midcap mutual funds is rather high and hence investors would do well to diversify their portfolio.
4. DSP Midcap Fund – Direct Plan
DSP Midcap Fund - Direct Plan has been a good performer in the last 1 year, generating a solid returns of 21.95 per cent in the last 1-year. An amount of Rs 1 lakh invested three years ago, would be worth Rs 1.32 lakhs today. One can invest in the fund through the SIP route, where you can begin by investing a minimum sum of Rs 500 and thereafter too one can invest Rs 500 every month through the Systematic Investment Plan route.
The fund has a very good portfolio including the likes of Divis Labs, Jubilant Foodworks, Supreme Industries, IPCA Labs, Exide Industries and Coromandel International.
5. Nippon India Growth Fund – Growth Plan
This is another fund that has performed reasonably well in the last few years. The 1-year returns from the fund is 19.38 per cent. A sum of Rs 1 lakh invested three years ago, would be worth Rs 1.33 lakhs. A sum of Rs 10,000 invested each month by way of SIP for the last 36-months would be worth Rs 4.13 lakhs.
The NAV under the dividend plan is Rs 64.28. This fund has performed reasonably well in the last few years. Those with a long-term perspective may want to invest in the fund.
6. Axis Midcap Fund – Growth
Axis Midcap Fund Growth has been a good performer having generated a returns of 22.37 per cent in the last one year. A sum of Rs 1 lakh invested in the fund about three years ago has translated into a sum of Rs 1.61 lakhs.
One can invest in the fund through a regular SIP of Rs 500 each month. This fund has been well rates by Crisil with a 5-star rating and also a 5-star rating from Value Research.
About the author:
Sunil Fernandes has spent 25 years covering business and finance in India and abroad. He has worked with leading newspapers like Hindustan Times, Deccan Herald and Gulf Times, apart from Investment magazines like Dalal Street Investment Journal and Oman Economic Review.