This Midcap Fund Has Given 3-Year Returns Of 165%, Should You Start Or Switch SIPs?

The last three year returns has been fantastic from small and midcap mutual funds. Here is a midcap mutual fund that has given a superlative 3-year absolute returns of 165% on lumpsum investment and not SIPs. Let's take a look.

SIP returns from PGIM India Midcap Opportunities Fund Direct-Growth

A monthly SIP of Rs 10,000 each month in PGIM India Midcap Opportunities Fund Direct-Growth would have resulted in a profit of Rs 2.36 lakhs, if you had to invest 3-years ago. For example, the total investment over 36-months would have been Rs 3.6 lakhs, but, its present value would be Rs 5.96 lakhs, resulting in a profit of Rs 2.36 lakhs. Over 5-year period the returns would have dipped to 28.81% on an annualized basis, which is much lower than the annualized returns over a 3-year period. We would suggest that investors always look for long-term returns and not short term returns.

Other details of the PGIM India Midcap Opportunities Fund

You can invest in this fund with a small SIP amount of Rs 1000. The fund has holding in good quality stocks including the likes of TVS Motors, ICICI Bank, Indian Hotels, ABB etc. The one thing that investors should note is that almost 96% is invested and the remaining is in cash and cash equivalents. Almost 70% of the investments is in midcap funds. This means should the markets fall from these levels, there is a high possibility that the fund value could also fall. Apart from this, we all know that midcap funds are far more riskier than the largecap funds. So, to that extent the risks are far higher. We would suggest that investors be weary and not invest large sums at this juncture.

How can you start an SIP in PGIM India Midcap Opportunities Fund?

You can look at approaching a broker on the website of the company. One can start an SIP in the PGIM India Midcap Opportunities Fund with a sum of Rs 1000. We have been telling readers that in the past mutual funds have given good returns, to replicate that may be very difficult. Apart from this interest rates on bank deposits have also been rising. So, investors do have an option in that sense. Look for small amounts and that too through SIPs only. Avoid investing large sums as the Sensex is now very close to the 62,000 levels. As mentioned earlier, there are also enough and more risks associated with mutual funds.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.