Midcap equity funds are mutual funds which primarily invest in the shares of mid cap companies (101st-250th largest companies in terms of market capitalisation). Midcap funds feature the perfect blend of risk and returns as they invest in the stocks of companies which along with being responsive to stock market changes also hold a considerable amount of stability.
Here are the List of top 5 Midcap Funds in 2019:
|Fund||1 Year Return||3 Year Return||5 Year Return|
|Kotak Emerging Equity Scheme||11.35%||8.38%||12.89%|
|L&T Midcap Fund||1.52%||8.27%||12.05%|
|Invesco India Midcap Fund||6.35%||9.96%||11.81%|
|DSP Midcap Fund||12.55%||8.72%||12.53%|
|HDFC Midcap Opportunities Fund||2.35%||6.77%||9.89%|
Data as of November 11, 2019; Source: Value Research
1. Kotak Emerging Equity Scheme
Kotak Emerging Equity Scheme is one of the veteran mid cap funds which has been in the space for more than a decade now. It is a well-performing scheme which has outperformed its benchmark during both short and long term periods. It is a relatively aggressive mid cap fund which has given minimal exposure to large caps in its portfolio and has invested a majority of its assets in consumption-driven sectors.
2. L&T Midcap Fund
L&T Midcap Fund is a nearly 15-year-old fund which made its debut in August 2004. It is an ideal mid cap fund for long-term periods of at least 5 years wherein it has given returns better than its benchmark. It follows an aggressive strategy in allocation of its assets across both market capitalisations and sectors. This makes it fit for investors who have a moderate to high risk appetite.
3. Invesco India Midcap Fund
Invesco India Midcap Fund has demonstrated an impressive performance track record since its inception in April 2007. The scheme has succeeded in outperforming its benchmark in all the three above-mentioned tenures- 1 year, 3 years as well as 5 years. It follows a relatively aggressive approach when it comes to the allocation of its assets across market caps. However, the scheme has hedged off its aggressive stance by following a relatively balanced approach in its asset allocation between cyclical and defensive sectors. This style of asset allocation helps it in featuring a moderately high risk level.
4. DSP Midcap Fund
DSP Midcap Fund is an established midcap fund which was launched in November 2006. The scheme has given attractive returns over the last 3 and 5 years. It is a relatively conservative mid cap fund which has given a significant exposure to large caps (15.52%) in its portfolio. As far as the scheme’s allocation of assets across sectors is concerned, it is a little tilted towards the chemicals sectors to which it has allocated nearly 15.97% of its assets. The considerable large cap inclusion helps the scheme in yielding consistent and stable returns.
5. HDFC Midcap Opportunities Fund
HDFC Midcap Opportunities Fund is a high-returns generating mid cap fund which has been in the space for nearly 12 years now. The scheme has beaten its benchmark by a margin of nearly 2% during both the last 3 year and 5 year periods. It is a relatively aggressive mid cap fund which holds just 3% of its assets in large caps. In sector-wise allocation of its assets also, the scheme has adopted an aggressive stance as it has invested a majority of its assets in consumption-driven sectors and not defensive sectors.