scorecardresearchMutual Fund Investing: These mid-cap funds gave more than 30 percent in

Mutual Fund Investing: These mid-cap funds gave more than 30 percent in three years. Details here

Updated: 23 Sep 2022, 10:23 AM IST

There are five mid cap funds that gave more than 30 percent annualised returns in the past three years. Read further to know more on this here

Mid cap funds are considered more than volatile than their larger peers. 

Mid cap funds are considered more than volatile than their larger peers. 

Annualised returns are a good indicator to evaluate the performance of mutual funds. The other factors that are vital for investors to judge their performance include safety of fund, liquidity among other factors such as credibility of fund house and that of fund managers.

Since mutual funds, by nature, are liquid, the other consideration that investors assess is the safety of funds which implies the fund should not be highly volatile.

Here, we are set to discuss the returns given by top-performing mid cap funds, particularly the ones which have delivered more than 30 percent in last three years. At the outset, however, we explain how are mid cap funds different from their small and larger peers.

What are mid cap funds?

These funds select stocks for investment from the mid cap category — i.e., stocks that are ranked between 100 to 250 by size (market capitalisation). They are considered good for investors who want to invest for a minimum of 3-4 years and are chasing high returns. Since these funds are more volatile than large caps, investors should be open to incur losses at the same time.

According to the latest monthly data from AMFI (Association of Mutual funds in India), there are 27 schemes in the mid cap category. After receiving the net inflow of 1,479 crore (against 1,244 crore in July), the net assets under management (AUM) as on Aug 31 stood at 1.78 lakh crore.

As shown in the table below, PGIM India Midcap Opportunities Fund delivered 41.82 percent return in the past three years. Quant Mid Cap Fund's returns were nearly 40.88 percent, SBI Magnum Midcap Fund gave 31.86 percent in the past three years and Edelweiss Mid Cap Fund delivered 30.17 percent return and Mirae Asset Midcap Fund gave 30.10 percent.

Mid cap fund                                           3-year-return (%)Benchmark
Edelweiss Mid Cap Fund                                               30.1727.83
Mirae Asset Midcap Fund                                                 30.1027.83
PGIM India Midcap Opportunities Fund                        41.8227.83
Quant Mid Cap Fund                                                           40.8827.83
SBI Magnum Midcap Fund                                        31.8627.83

(Source: Direct returns as on Sept 20, 2022)
(Benchmark index is NIFTY Midcap 150 Total Return Index)

However, it is important to note that these returns were only for three years. And if one looks at the past five-year returns of mid cap funds, none of the above-mentioned schemes delivered more than 30 percent returns.

Quant mid cap, meanwhile, gave 20.76 percent (direct) returns in the past five years, according to AMFI data as on Sept 20.

Here we explain how to choose where to invest: mid caps vs small caps
First Published: 23 Sep 2022, 10:23 AM IST