Mid cap mutual funds are a popular investment option for those who want to invest in stocks with a relatively high potential for growth but also want to minimize the risk. Mid cap companies are those that have a market capitalization between $2 billion and $10 billion. These companies are generally well-established and have a good track record of performance. Investing in mid cap mutual funds can be a great way to diversify your portfolio and potentially earn high returns over the long term. In this blog, we’ll discuss the top mid cap mutual funds you should consider for long-term investments.
- HDFC Mid-Cap Opportunities Fund
The HDFC Mid-Cap Opportunities Fund is one of the best mid cap mutual funds in India. It has consistently delivered high returns over the long term, with a 5-year average return of 19.39%. The fund has invested in well-established mid cap companies across sectors like financial services, healthcare, and engineering. It is managed by Chirag Setalvad, who has extensive experience in managing mid cap funds.
- Axis Midcap Fund
The Axis Midcap Fund is another top-performing mid cap mutual fund in India. It has a 5-year average return of 18.13% and has consistently beaten its benchmark index. The fund has invested in companies with strong growth potential and sustainable business models. The fund is managed by Jinesh Gopani, who has won several awards for his performance as a fund manager.
- ICICI Prudential Midcap Fund
The ICICI Prudential Midcap Fund is a well-diversified mid cap mutual fund that has delivered consistent returns over the years. It has a 5-year average return of 15.94% and has invested in mid cap companies across various sectors like banking, healthcare, and consumer goods. The fund is managed by Mrinal Singh, who has over 15 years of experience in the mutual fund industry.
- SBI Magnum Midcap Fund
The SBI Magnum Midcap Fund is a top-performing mid cap mutual fund that has consistently delivered high returns over the years. It has a 5-year average return of 18.09% and has invested in companies with strong growth potential and sustainable business models. The fund is managed by Anup Upadhyay, who has over 15 years of experience in the mutual fund industry.
- DSP Midcap Fund
The DSP Midcap Fund is a well-diversified mid cap mutual fund that has consistently delivered high returns over the long term. It has a 5-year average return of 17.85% and has invested in companies across various sectors like financial services, consumer goods, and healthcare. The fund is managed by Vinit Sambre, who has won several awards for his performance as a fund manager.
Conclusion
Investing in mid cap mutual funds can be a great way to earn high returns over the long term while minimizing risk. The funds mentioned above are some of the best mid cap mutual funds in India that you can consider for long-term investments. However, before investing, it’s important to do your own research, assess your risk tolerance, and consult with a financial advisor to determine the best investment strategy for you.
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Frequently Asked Questions (FAQs)
Q: What is a mid cap mutual fund?
A: A mid cap mutual fund is a type of mutual fund that invests primarily in mid-sized companies that have a market capitalization between $2 billion and $10 billion.
Q: Why should I invest in mid cap mutual funds?
A: Investing in mid cap mutual funds can be a great way to diversify your portfolio and potentially earn high returns over the long term. Mid cap companies have a relatively high potential for growth, but they are also more established and stable than small cap companies.
Q: What are the risks associated with mid cap mutual funds?
A: Like any investment, mid cap mutual funds come with risks. Since mid cap companies are smaller than large cap companies, they may be more susceptible to economic downturns or industry-specific challenges. Additionally, mid cap mutual funds may be more volatile than large cap mutual funds.
Q: How do I choose the best mid cap mutual fund for me?
A: When choosing a mid cap mutual fund, it’s important to consider factors such as the fund’s historical performance, the fund manager’s experience, the fund’s investment strategy, and the fund’s expense ratio. It’s also important to consider your own investment goals and risk tolerance.
Q: Can mid cap mutual funds be part of a diversified portfolio?
A: Yes, mid cap mutual funds can be a great way to diversify your portfolio. By investing in mid cap companies, you can potentially benefit from their growth potential while also minimizing risk by investing in a diverse range of companies.
Q: How long should I hold onto a mid cap mutual fund?
A: Mid cap mutual funds are typically considered to be long-term investments. While past performance is not a guarantee of future performance, historical data suggests that mid cap mutual funds tend to perform best over a period of 5-10 years.
Q: Are mid cap mutual funds suitable for beginner investors?
A: Mid cap mutual funds can be a good option for beginner investors who are comfortable with a moderate level of risk. However, it’s important to do your own research and consult with a financial advisor to determine if mid cap mutual funds are suitable for your investment goals and risk tolerance.
