The Best Mid-Cap Fund to Invest in 2021

Let us find the best mid-cap mutual fund to invest in 2021 and review the performance of our choice of best mid-cap fund of 2020.

So let’s begin.

The year 2020 was volatile, and I am sure very few will disagree.

The Sensex and the Nifty did well in 2020 overall, but one can’t say the same for the mid-cap index as yet.

Investing in the right stocks and funds in 2020 made sure there is less red in the investor’s mid-cap portfolio.

The Top Mid-Cap Funds for 2021

We will use the process to come to the best mid-cap funds for 2021 is – from the 4-Star and 5-star rated mid-cap fund by ValueResearchOnline, we will compare the performance for the past year along with expense ratio to get the best mid-cap fund.

I prefer to use only one year’s performance because it was a challenging year for mid-caps. So funds that can do well in the bad times will have an edge in the coming years when the mid-cap section of the market does well.

Best Mid-Cap Funds for 2021

The excellent performing mid-cap funds in 2020 with sizeable asset under management and lower expense ratio are:

• Axis Midcap
• Kotak Emerging Equity
• Invesco India Midcap

If we have to select only one fund, then it has to be:

Axis Midcap

Axis Midcap Fund has been a consistent performer. It has done well in the past year and has been doing well in the bad times for mid-caps for a long-time. It was the mid-cap fund of 2020, and Without a doubt, it has to be the best mid-cap fund for 2021.

As expected, CRISIL also lists the Axis Midcap fund as the top mid-cap fund yet again.

Moreover, CRISIL also ranks the PGIM India Midcap Opp fund at No.1, but because it has meager assets under management, I think it is better to go with only the Axis Mid-cap fund.

How Well The Best Mid-Cap Funds of 2020 Performed?

I share the series of best funds because we evaluate how we have done in the past. It means either we do well investing or we learn from the selection process.

The best Mid-cap funds of 2020 made us better returns this time.

The best mid-cap funds I selected in 2020 gave a return of close to ~25% in 2020.

• Axis Midcap Fund
• Kotak Emerging Equity

Now I can be a little more confident that the process we are using to choose the best fund for investing is working.

Final Thoughts

Do not switch funds every year and pay the entry and exit load or long term capital gains tax.

In case you have not selected a better performing fund earlier or want to move to a new fund for any other reason (move to regular to direct funds). Don’t exit the investment in the old fund. Just stop the SIP and let the invested amount remain and grow over time in the past funds. Create a new SIP in the new funds.

As always, this isn’t an endorsement of any fund. The emphasis is on the process. The funds may be doing well now, but when you want to be investing, use the same process and find the best fund at that time to invest. Use ValueResearchOnline and CRISIL as and when you want to invest in 2021.