scorecardresearchMF Returns: These mid cap funds gave more than 30% return in the past 3

MF Returns: These mid cap funds gave more than 30% return in the past 3 years. Should you invest?

Updated: 20 Apr 2023, 09:17 AM IST
TL;DR.

Over a dozen mid mutual fund schemes have given a return higher than 30% CAGR return in the past three years.

Mid cap mutual funds invest a minimum of 65 percent of their assets in mid cap stocks

Mid cap mutual funds invest a minimum of 65 percent of their assets in mid cap stocks

At the time of investing in mutual funds, investors tend to consider a slew of factors which range from category of schemes to the reputation to fund house, and from total expense ratio (TER) to the historical returns.

Although each factor plays its own unique role, the past returns delivered by the fund scheme are seen as important by investors. It is vital to realise that although past returns do not guarantee the scheme’s future performance, investors usually examine them before taking a plunge.

Here we take a look at some of the top-performing mid cap mutual funds that have given returns higher than 30 percent CAGR in the past three years. However, before we proceed, we explain what are mid cap mutual funds.

What are mid cap funds?

These are mutual funds which invest a minimum of 65 percent of assets in the mid-cap stocks i.e., the stocks that lie in the range of 101-250 listed stocks in terms of market capitalisation. Since mid-cap funds fall in the middle of the spectrum, they are inherently more volatile than their larger counterparts.

So, only investors with a high-risk appetite are advised to opt for them.

There are a total of 29 mid-cap funds with total assets under management (AUMs) of 1,83,255 crore as on March 31, 2023, as per the latest AMFI data.

Mid cap funds                                                3-year returns (%) AUM ( crore)
Aditya Birla Sun Life Mid Cap Fund                                  30.723,377
Edelweiss Mid Cap Fund                                                    36.322,613
HDFC Mid-Cap Opportunities Fund                              36.7335,172
ICICI Prudential Midcap Fund                                              34.643,514
Kotak Emerging Equity Fund                                 35.9924,387
Mirae Asset Midcap Fund                                                    35.498,851
Motilal Oswal Midcap Fund                                            36.933,800
PGIM India Midcap Opportunities Fund                           42.587,811
Quant Mid Cap Fund                                                       43.361,641
SBI Magnum Midcap Fund                                            39.738,733
Union Midcap Fund                                                         35.50579
UTI Mid Cap Fund                                                           32.836,952

(Regular returns as on Mar 31, 2023; Source: AMFI)

As we can see in the table above, these funds have given a return of as high as 43 percent per annum. Most of these schemes have given a return that ranges between 32 percent to 39 percent per annum.

It is also important to, alongside, look at the size of these fund schemes. Some of the schemes are small such as Union Midcap Fund with an AUM of 579 crore and Quant Mid Cap Fund with an AUM of 1,641 crore.

At the same time, the large schemes such as Kotak Emerging Equity Fund has an AUM of 24,387 crore and HDFC Mid-Cap Opportunities Fund with an AUM of 35,172 crore.

In conclusion, we would like to highlight that more than a dozen mid cap funds delivered an exceptionally high returns in the past three years ending March 31, 2023. But since this is a historical data, it does not guarantee future returns.

 

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First Published: 20 Apr 2023, 09:17 AM IST