This Mid-cap Mutual Fund Ticked Above 82% Returns In Long Term: Rated By Morningstar

This is a mid-cap fund which means the fund house will invest most of its assets in mid-size companies, depending on the market capitalization.

Mid-Cap Mutual Fund SIP investment rationale

The mid-cap mutual funds will invest in stocks, listed in the equity markets, that come under the portfolio of the mid-size category. That means the companies will have mid-size market capitalization, hence will be listed between 100 to 250 in the stock market. On the other hand, the large-cap companies are the top 100 companies listed in the equity market. However, the small and mid-size companies have better potential to grow in the future, rather than large-cap companies. The mid-size companies will offer you both security and good returns in long term.

However, as an investor, you must check the AUM, and expense ratio of the fund, along with comparing it with the other peer funds.

DSP Midcap Fund - Regular Plan

DSP Midcap Fund is a mutual fund SIP investment that has a NAV of Rs. 85.11, additionally the fund size (AUM) is Rs. 14222.72 crores. The Expense Ratio (ER) of this fund is 1.79%. It is lower than its category average, which is 2.12%. The Expense Ratio is measured as the percentage, which the fund house will utilize from the retail investors' money, for fund management purposes. On the other hand, AUM is the total market value of the mutual fund's assets.

This above-mentioned mutual fund SIP has been best rated with 3 Star by rating agency Morningstar.

Absolute and annualized returns

The DSP Midcap Fund's SIP's absolute returns stood best in the long term. In the last 1-year SIP return stood at 0.68%, in the last 2 years it has fetched 24.95% returns, in the last 3 years it has given 35.95% returns, and in the last 5 years, it has fetched 46.15% returns. Annualized returns of this fund's SIP were 22.93% in the past 2 years, and 20.92% in the past 3 years.

DSP Midcap Fund's absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 14.73%, in the last 2 years it has fetched 37.85% returns, in the last 3 years it has given 70.00% returns, and in the last 5 years, it has given 82.56% returns. In the past 3 years, the DSP Midcap Fund's annualized returns stood at 19.33%.

Portfolio

DSP Midcap Fund's total equity holding is 98.30%, and the rest of the 1.70% is invested in other sectors. Among the total 54 stocks, the Fund's Large Cap Investments are 7.76%, Mid Cap Investments are 57.53%, Small Cap Investments are 19.15%; and 13.86% investments are allocated in other funds.

This fund's portfolio turnover ratio is 29.00%. The top 10 equity holdings of the fund are Supreme Industries, Ipca Laboratories, Atul Ltd. (Chemicals - speciality), Cholamandalam Investment & Finance Co. Ltd., Bata India Ltd., Coromandel International Ltd. (Fertilisers-phosphatic), Manappuram Finance Ltd., ICICI Bank, Federal Bank, Bharat Forge Ltd.

Other funds under this category are, Baroda Mid-cap Fund - Plan A - Growth, PGIM India Midcap Opportunities Fund - Growth, Quant Mid Cap Fund - Growth, etc.

(Also read: This Short Term Debt Mutual Fund SIP, Best Rated By Morningstar: Check Portfolio)

Disclaimer

Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article. (Data mentioned as on February 22, 2022)