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If you are a mutual fund investor with a high risk appetite, you may have a large portion of your portfolio invested in mid-cap mutual funds.
2023, which just culminated, delivered significantly higher returns across sectors and market caps. The BSE Sensex gained more than his 18%, while the Nifty50 settled 20% higher than his.
As the bull market continues, mid-cap mutual funds delivered returns in the range of 38-48% in 2023, beating investors’ expectations.
Mid-cap investment trust
For non-Bers, a mid-cap mutual fund refers to a scheme that invests at least 65 per cent of its assets in mid-cap stocks, i.e. securities of companies ranked between 101st and 250th by market capitalization in the stock market .
Investors with a high risk appetite are advised to invest in mid-cap mutual funds (along with small-cap stocks). These schemes offer high returns, but at the same time they also have high price volatility.
This means that when the market index rises, these schemes rise further and when the market falls, they fall further.
The best performing mid-cap mutual funds are:
| mid cap stock fund | 1 year return (%) |
| Japan India Growth Fund | 48.61 |
| Mahindra Manulife Midcap Fund | 47.01 |
| JM Midcap Fund | 44.54 |
| HDFC Mid Cap Opportunity Fund | 44.47 |
| White Oak Capital Midcap Fund | 41.51 |
| Tata Midcap Growth Fund | 40.54 |
| HSBC Midcap Fund | 40.01 |
| Aditya Birla Sun Life Midcap Fund | 39.87 |
| DSP Midcap Fund | 38.44 |
| Edelweiss Mid Cap Fund | 38.42 |
(Source: AMFI; 1-year return as of December 29, 2023)
As can be seen from the table above, 7 out of 10 schemes have returned more than 40% in the past year, while the remaining 3 have returns in the range of 38-39% .
Some of the best performing mid-cap mutual funds include Japan India Growth Fund, Mahindra Manulife Mid-Cap Fund, JM Mid-Cap Fund and HDFC Mid-Cap Opportunities Fund (see table above).
It is essential to mention that the past returns of an equity mutual fund, although an important factor, do not guarantee the future prospects of a mutual fund scheme. Other important factors that investors need to consider when deciding whether to invest include the category in which the mutual fund scheme falls, the reputation of the fund house and the fund manager.
Note: This story is for informational purposes only. Please consult a SEBI registered investment advisor before taking any investment related decisions.
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