Before zeroing in on a mutual fund scheme, most avid investors tend to weigh an array of factors. These key considerations entail the fund house’s reputation along with the reputation of fund managers, category of mutual fund scheme, and scheme’s total expense ratio (TER).
Among them, one of the key factors that investors pay attention to includes the past performance of mutual fund schemes under that category.
Here we take a look at the mid cap mutual funds that have delivered exceptional returns to investors in the past few years.
Before we proceed further, let us understand what exactly are mid cap mutual funds. Mid cap mutual funds invest a minimum of 65 percent of their assets in the stocks of companies that are ranked from 101 to 250 in terms of their market capitalisation.
The top 100 are referred to as large caps and the bottom 250 are referred to as small cap mutual funds.
Around five mutual fund schemes have given returns in the range of 15-17 percent compound annual growth rate (CAGR) per annum, shows the AMFI (Association of Mutual Funds in India) data.
As the table below shows, Edelweiss Mid Cap Mutual Fund delivered 16.80 per cent per annum in the past five years, Mahindra Manulife Mid Cap Fund gave 16.54 percent per annum, Baroda BNP Paribas Midcap Fund gave 15.98 per cent per annum, UTI Mid Cap Fund delivered 15.33 percent per annum and Taurus Discovery (Midcap) Fund gave 14.79 per cent per annum.
|Mid Cap funds
|Edelweiss Mid Cap Fund
|Mahindra Manulife Mid Cap Fund
|Baroda BNP Pariba Mid Cap Fund
|UTI Mid Cap Fund
|Taurus Discovery (MidCap) Fund
(Source: AMFI; data as on June 28, 2023)
Now, we share more details on these fund schemes:
Edelweiss Mid Cap Fund: It was launched on Dec 26, 2007. Minimum investment in the scheme is ₹5,000. The scheme has given a return of 12.06 percent since inception. This means if someone had invested ₹1,00,000, it would have swelled to ₹5,88,771 by now.
The key constituent stocks of mutual fund scheme include Cummins India, Persistent Systems, Federal Bank, Kajaria Ceramics, Indian Bank, ABB India and Trend Ltd.
Mahindra Manulife Mid Cap Fund: The scheme was launched on Jan 23, 2018. If someone had invested ₹10,000 at the time of scheme's launch, it would have swelled to ₹17,924. The fund is managed by Abhinav Khandelwal and Manish Lodha.
Baroda BNP Paribas Midcap Fund: It was launched on Jan 1, 2013. It has given a return of 18.36 percent since its inception. The fund is managed by Shiv Chanani.
UTI Mid Cap Fund: It was launched on April 7, 2004. The scheme has given a return of 17.42 percent since its inception. This means if someone had invested ₹10,000, it would have grown to ₹2,16,861.
Its key constituents are NCA, Cholamandalam Investment & Finance Co, Federal Bank, Astral, Tube Investments of India.
Taurus Discovery (Midcap) Fund: This was launched on Sep 5, 1994. The scheme has given a return of 7.59 percent since inception. The scheme is managed by Hardik Shah.