Categories: Mutual Fund

Best Midcap Funds

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.