Before investing in a mutual fund scheme, investors often face a dilemma as to which ones to opt for and which ones to ignore. Most investors tend to weigh a number of pros and cons before shortlisting a mutual fund scheme such as the reputation of a fund house, category of scheme and importantly – the past returns of the fund.
Here, we give a lowdown on the mid cap mutual funds, and their historical returns in the past 10 years. Before we proceed further, we explain what exactly are mid cap funds.
Mid cap funds refer to the schemes that invest a minimum of 65 percent of their assets in mid cap stocks, as per the Sebi's categorisation of mutual fund schemes issued in Oct 2017.
Mid cap stocks are the securities of companies that fall between 101 to 250 companies in terms of their market capitalisation.
There are 29 mid cap schemes in the entire mutual fund universe in India with total assets under management (AUMs) amounting to ₹2.29 lakh crore, shows the Association of Mutual Funds in India (AMFI) data as on July 31, 2023.
|Mid cap funds||CAGR (%)||AUMs ( ₹crore)|
|Kotak Emerging Equity Fund||24.78||32,757.32|
|HDFC Mid-Cap Opportunities Fund||23.51||46,738.87|
|Edelweiss Mid Cap Fund||23.33||3,618.73|
|SBI Magnum Midcap Fund||22.66||12,249.24|
|Tata Midcap Growth Fund||22.60||2,423.25|
|UTI Mid Cap Fund||22.57||8,761.65|
(Source: AMFI; Data as on Aug 28, 2023)
As we can see in the table above, the top performing mid cap mutual funds delivered annualised returns in the range of 22-24 percent in the past 10 years.
Kotak Emerging Equity Fund delivered as high as 24.78 percent in the past 10 years whereas UTI Mid Cap Fund gave 22.57 percent during the same period as on Aug 28, 2023, reveals the data released by the AMFI.
Here, we give a lowdown on the top-performing mid cap funds:
Kotak Emerging Equity Fund: It was launched on March 30, 2007. Its annualised return since inception is 14.30 percent. Its key constituent stocks include Triparty Repo, Supreme Industries, Cummins India, Schaeffler India and Persistent Systems. Its total assets under management are ₹32,757 crore.
HDFC Mid-Cap Opportunities Fund: It was launched on June 25, 2007 and has given an annualised return of 17.07 percent since its inception.
The expense ratio of this scheme is 1.55 percent and the constituent stocks include India Hotels Company, Tata Communications, Reverse Repo, Treps- Tri-Party Repo and Max Healthcare Institute. Its total assets under management (AUMs) are ₹46,738 crore.
Edelweiss Mid Cap Fund: It was launched on Dec 26, 2007 and its expense ratio is 1.88 percent. The scheme has delivered an annualised return of 12.35 percent since its inception.
The key constituent stocks include Clearing Corporation of India, Cummins India, Federal Bank, Indian Bank and Kajaria Ceramics. The scheme’s total assets under management amount to ₹3,618 crore.
SBI Magnum Midcap Fund: It was launched on March 29, 2005 and has an expense ratio of 1.83 percent. The scheme has delivered an annualised return of 16.75 percent.
The key constituent stocks include Crisil, Treps, Schaeffler India, Tube Investments of India and Thermax. Its AUMs stand at ₹12,249 crore.
Tata Midcap Growth Fund: It was launched on July 1, 1994 and its expense ratio is 2.03 percent. The scheme has delivered an annualised return of 12.44 percent. Its key constituent stocks include IDFC First Bank, Thermax, Indian Bank, Cummins India and Aia Engineering.
The scheme has an AUMs of ₹2,423 crore.
UTI Mid Cap Fund:It was launched on April 7, 2004 and has an expense ratio of 1.81 percent. The scheme has an annualised return of 17.92 percent. The scheme's key constituent stocks include Cholamandalam Investment, Shriram Finance, APL Apollo Tubes and Federal Bank. The total AUMs of the scheme are ₹8,761 crore.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.