The advent of the new year 2021, is not the best time to invest in equity mutual funds. This is simply because the markets are at record levels and you cannot make money when buying mutual fund units at record levels. We suggest investors should look at small amounts to invest, since markets at a record levels. Here are 4 Midcap Funds to invest considering their strong ratings from Crisil and Value Research.
1) PGIM India Midcap Opportunities Fund
This fund has a 5-star rating from Crisil and a 4-star rating from Value Research. The fund has done well in the last few years in terms of returns. In fact, the fund has generated whopping returns of 56 per cent in the last 1 year and the three year returns are 17 per cent on an annualized basis.
The fund has holdings in Coforge, ACC, Dixon Technologies, NATCO Pharma, Cholamandalam etc.
The minimum SIP investment needed to start an investment is Rs 500. The net asset value for PGIM India Midcap Opportunities Fund under the growth plan is Rs 28.16. Since the PGIM India Midcap Opportunities Fund has offered spectacular returns to investors, we suggest that investors invest small amounts and probably through SIP.
2) DSP Midacp fund
This fund has been rated 5-star by by Value Research and 4-star by Crisil. The fund largely invests in midcap stocks, which tend to generate volatile returns when compared to largecap stocks. The top 5 holdings of the fund include names like IPCA Labs, Cholamandalam, Infosys, Manappuram Finance and Balkrishna Industries.
The fund has given a 1-year return of 27 per cent, while the 5-year returns on an annualized basis is 14 per cent. DSP Midacp fund has now invested almost 91.7 per cent in equities, while the remaining is held in cash. One can invest in the fund through the SIP route as well, wherein the minimum investment is Rs 500 and the additional investment is Rs 500 every month. This fund in the longer term has the potential to generate good returns.
3) Invesco India Midcap Fund
This fund has been rated as "5" star by Crisil. Even Value Research has given a very good rating of 4-star for the fund. The last 4 years has seen Invesco India Midcap Fund generate a returns of 13 per cent on an annualized basis. In fact, the seven year returns on an annualized basis is 19.53 per cent, which is stupendous.
The Invesco India Midcap Fund has invested almost 95.4 per cent in equities and the balance is held in cash. Invesco India Midcap Fund has holdings in quality midcap stocks including the likes of Coromandel International, Balkrishna Industries, Apollo Hospitals, Mphasis, ICICI Bank etc. If you are a long term investor this fund may be a good bet, though the NAV under the growth plan has risen substantially over the last few months in line with the markets.
4) Kotak Emerging Equity Fund
This is another fund that has been rated 4-star by Value Research. Kotak Emerging Equity Fund has generated returns of 27 per cent in the last year, in line with the sharp upward movement in the markets.
The fund has assets under management to the tune of Rs 8,600 crores. Almost 99 per cent of the funds are invested in equities, which is not a big positive when the markets are at record levels.