First let us look at the charts of Nifty and Sensex over last 1 year.
We can clearly see that Sensex and Nifty are in a very broad range for quite some time now especially in whole of 2010.
Now let us look at the chart of Midcap Index over last 1 year.
We can clearly see that there has been lot of activity in the Midcap segment of the market over the same period of time.
So it would be a good idea to have the list of best midcap funds that have performed well in the last one year.
Before I share the list of funds a line of thought about Midcap Funds.
Funds that invest in small to medium size companies are termed as Mid Cap Equity Funds but there is no standard definition for classifying a company as small or medium sized but as a general guidelines which is followed is market capitalization of up to Rs 500 crore are classified as small and between Rs 500 crore and Rs 1,000 crore are classified as medium sized.
Now using the above guidelines each mid cap fund manager invests in a different set of companies and so performance of Mid-Cap funds can vary considerably. So let me list the best performing Midcap Funds for last 1 year.
| Fund Name | Launch Date | 1 Year Return in % |
|---|---|---|
| DSPBR Small and Mid Cap Reg | Oct-2006 | 78.07 |
| UTI Mid Cap | Apr-2004 | 74.66 |
| HDFC Mid-Cap Opportunities | Jun-2007 | 70.01 |
| Religare Mid Cap | Mar-2007 | 68.01 |
| IDFC Small & Midcap Equity | Feb-2008 | 65.33 |
| Kotak Mid-Cap | Jan-2005 | 64.40 |
| Sundaram BNP Paribas Select Midcap | Jul-2002 | 59.04 |
| L&T Midcap | Jul-2004 | 57.52 |
| Sahara Mid-Cap Fund | Dec-2004 | 56.87 |
| Birla Sun Life Mid Cap Plan A | Oct-2002 | 55.43 |
| HSBC Midcap Equity | May-2005 | 54.00 |
Small and medium sized companies have higher beta. This actually means that they move more than ever reliable big companies on either side up or down. So instead of getting into those funds right now it may be the right time to keep an eye on performing funds and accumulate them in declines.
Disclosure
I have investment in 2 of the oldest Midcap Fund aka Birla Sun Life Mid Cap and Sundaram BNP Paribas Select Midcap for quite some time now.
Over to you
Share your preferred Midcap Funds in comments below.
Data by ValueResearchOnline, Charts by Yahoo Finance
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{ 13 comments… read them below or add one }
Hi Shabir,
Is it wise to buy any of the mutual funds listed in this post now ? Because their nav has become as high as the prices of some of the stocks.
What is your opinion about investing in a freshly released mutual fund instead of an old one ?
Recently I saw an advert on tv about L&T infrastructure fund (yet to be released). What do you think about it ?
No Lala I would never invest in fresh mutual funds but prefer the ones with prooven track record and if you are not comfortable at such high valuation either wait or go for SIP
Hi Shabbir
Thanks for this beautiful information
Can u tel what is ARN fee for HUF
Hi Shabbir , i had been investing in following Mutual funds HDFC top 200, Dsp BR Equity from past 1 year through SIPs. The SIP amount is getting deducted by ECS from my SB account in ING VYSYA Bank. The bank is charging around 2 % even though the decision of investing in these MFs was entirely mine and i had not taken any help from Relationship Manager of the bank. On questionong the bank manager told this is the distributor fees every investor have to pay when one transacts through their bank(ING VYSYA bank). Can you please tell me whether to continue sip or invest directly? Tell me the options how to invest directly? Fill form and submit in Karvy or CAMS or invest online? Can one do SIPs online. It will be of much help. Waiting for replies. Thanks in advance.
Stop the SIPs and then restart after negotiating the fees.
Taking in view of the recent rally, will the Mid Cap funds continue to perform well, Your comments pl.
I think so. After a rally the gap between large caps and mid cap widens and so they tend to outperform the market for quite some time.
I am investing in Sundaram BNP Paribas Select Midcap through SIP mode for last 2 years and its giving nice return. Should I quit now from this as the market is at its peak almost? What do you say?
Nope. You can quit on investing but I think taking the money out from a Mid cap fund you should wait little bit more and work on a trailling stop loss basis. i.e if you fund value becomes less than x amount you should quit
Namaskar Shabbir Ji
I have started first time Rs.1000/- per month in UTI mastershare MF by SIP. Is it right? Another i want to invest Rs.1000/- per month in HDFC Midcap Opp. MF & Rs.1000/- per month in Reliance regular saving equity scheme by SIP. Can u suggest me it is right or any other.
Thanks with Regards
Sanjay Sharma
I think you could choose the best fund in the category. Like DSP Midcap Fund is best Midcap fund
My name is Baskar, age-24 years, I am new for mutual fund investing, I would like to invest 1000 each in three of the mutual funds, I searched in value research online and money control. From that I found there are so many top ranked mutual funds, e.g 1) UTI div. yield fund 2) UTI opp. 3) HDFC Top 200 4) HDFC growth 5) HDFC equity 6) ICICI pru. focused blue chip fund 7) ICICI pru. discovery fund. DSP blackrock top 100. Among 8 I select UTI divident yield fund(diversified), HDFC top 200(large cap), hdfc mid cap opp(mid and small cap). is it ok/good funds to invest? or I want your suggestions what are the mutual funds should I have to invest????
Risk-low to medium
Term-long term(10 to 15 years)
Returns-appr. 15%
Baskar, I think you have good selection of funds but I don’t recommend 3 funds from the same category but have either one fund or have 3 funds from different category for diversification.