Mid cap Fund

When we talk about investing in equity mutual funds, choosing the scheme with a focus on the right market capitalization is paramount to meeting your investment objectives, Mid cap funds are a type of equity mutual funds that invests in the stock of mid-sized companies. According to the norms, companies that are ranked from 101 onwards till 250 based on their market capitalization, are categorized as mid cap companies. Here are some Best mid cap mutual funds to invest in 2021

Mid-cap Equity Funds: meaning, Benefits, advantages & disadvantages

choosing the scheme with a focus on the right market capitalization is paramount to meeting your investment objectives. The market capitalisation of a company helps understand the benefits of investing in it and the associated risks. There are different types of equity mutual fund schemes categorized based on the market capitalization of the companies that they prefer to invest in. Here, we will explore Mid Cap Mutual Funds and talk about some essential aspects of these schemes. Best mid cap mutual funds to invest in 2021

Also Read : Top Small Cap Fund

Best mid cap mutual funds to invest in 2021

Fund NameReturns (%)
1 year3 year5 year7 year10 year
Axis Midcap Fund55.2720.1219.3417.6420.69
DSP Midcap Fund45.1815.7214.9917.1718.13
Invesco India Midcap Fund51.4615.6215.9916.2718.73
Tata mid cap growth fund59.3618.5515.8916.6819.01
Nippon India Growth Fund 60.5018.6016.2515.9316.90
Kotak Emerging Equity Fund64.7918.7316.5318.9020.48
L&T Midcap Fund48.5711.4414.7316.4218.72
Edelweiss Midcap Fund65.0417.5116.7717.9520.34
HDFC Midcap Opportunities Fund53.7612.5713.4215.6618.55
Franklin India Prima Fund54.1012.9012.5915.4118.98
(S&P BSE 150 Midcap TRI)
Midcap Fund category average59.1715.4514.5115.9718.36

Also Read : Best multi cap fund

What are Mid Cap Mutual Funds

Mid Cap Funds invest in equity and equity-related instruments of mid-cap companies. According to the securities exchange boards of India (SEBI), mid-cap companies are those which are ranked between 101 and 250 in the list of companies according to market capitalization. To give you a fair idea, the market capitalization of the 101st company on the list is around Rs. 30,000 crores, while the market cap of the 250th company is around Rs. 9,500 crores.

Since mid-cap companies fall between the small-cap and large-cap companies, they offer certain advantages and disadvantages to both of them. Mid-cap funds usually offer better returns than large-cap funds but are more volatile than them. On the other hand, they are more stable than the small-cap funds  but tend to offer lesser returns. In a nutshell, mid-cap mutual funds are the perfect combination of risk and return. As an investor, if you select the schemes prudently having a great selection of stocks, diversification across sectors, and good fund manager, then you can expect much better returns.

Who should Invest in Mid Cap Equity Funds

Mid Cap Mutual Funds carry a higher risk than large cap funds, Hence, you must opt for these schemes if you have a higher risk appetite . Also, you need an investment horizon of around 8-10 years. Remember, the mid-cap segment holds a lot of opportunities for investment and wealth creation. Hence, it is important to choose a scheme that focuses a lot on researching the market and finding good investment opportunities. If you are averse to taking risks, then you must reconsider your decision to invest in mid-cap funds. Also, ensure that you consider your financial goals along with the risk preference and investment horizon before deciding on investing in mid-cap funds.