Midcap mutual funds are a type of mutual fund that invests in companies with a market capitalization between $2 billion and $10 billion. These funds have historically provided higher returns than large-cap funds while carrying less risk than small-cap funds. In this blog post, we will discuss the top midcap mutual funds of 2021.
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HDFC Mid-Cap Opportunities Fund
- The HDFC Mid-Cap Opportunities Fund has consistently outperformed its benchmark index over the years. The fund invests primarily in mid-cap stocks and has a long-term investment horizon. It has generated an annualized return of 20.7% over the last five years, making it one of the top performers in its category.
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Kotak Emerging Equity Fund
- The Kotak Emerging Equity Fund is another top-performing midcap fund that has consistently delivered strong returns. The fund has a diversified portfolio and invests in companies that have the potential to grow and become large-cap companies in the future. It has generated an annualized return of 22.2% over the last five years, making it one of the best midcap mutual funds in India.
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Axis Midcap Fund
- The Axis Midcap Fund is a popular midcap fund that invests in companies with strong growth potential. The fund has a well-diversified portfolio and has consistently delivered strong returns over the years. It has generated an annualized return of 20.3% over the last five years, making it one of the top midcap mutual funds in 2021.
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SBI Magnum Midcap Fund
- The SBI Magnum Midcap Fund is another popular midcap fund that has consistently outperformed its benchmark index. The fund has a diversified portfolio and invests in mid-cap companies that have the potential to become large-cap companies in the future. It has generated an annualized return of 18.6% over the last five years, making it one of the best midcap mutual funds in India.
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Franklin India Prima Fund
- The Franklin India Prima Fund is a well-known midcap fund that has a long track record of delivering strong returns. The fund has a diversified portfolio and invests in companies that have the potential to grow and become large-cap companies in the future. It has generated an annualized return of 16.7% over the last five years, making it one of the top midcap mutual funds in 2021.
Midcap mutual funds have emerged as a popular investment option among investors due to their ability to generate higher returns than large-cap funds while carrying lower risk than small-cap funds. Mid-cap companies are often at the cusp of their growth phase and have the potential to grow into large-cap companies in the future. However, it’s important to note that mid-cap stocks can be volatile, and investors should have a long-term investment horizon to benefit from their growth potential.
Let’s take a closer look at the top-performing midcap mutual funds of 2021:
- HDFC Mid-Cap Opportunities Fund: The fund invests primarily in mid-cap stocks and has a long-term investment horizon. It has a diversified portfolio and invests in companies that have the potential to grow and become large-cap companies in the future. The fund has generated an annualized return of 20.7% over the last five years, making it one of the best midcap mutual funds in India.
- Kotak Emerging Equity Fund: The fund has a diversified portfolio and invests in companies that have the potential to grow and become large-cap companies in the future. The fund has generated an annualized return of 22.2% over the last five years, making it one of the top midcap mutual funds in 2021.
- Axis Midcap Fund: The fund invests in companies with strong growth potential and has a well-diversified portfolio. It has consistently delivered strong returns over the years and has generated an annualized return of 20.3% over the last five years.
- SBI Magnum Midcap Fund: The fund has a diversified portfolio and invests in mid-cap companies that have the potential to become large-cap companies in the future. It has consistently outperformed its benchmark index and has generated an annualized return of 18.6% over the last five years.
- Franklin India Prima Fund: The fund has a diversified portfolio and invests in companies that have the potential to grow and become large-cap companies in the future. It has a long track record of delivering strong returns and has generated an annualized return of 16.7% over the last five years.
Investing in midcap mutual funds can be a good way to diversify your portfolio and benefit from the growth potential of mid-cap companies. However, it’s important to note that mid-cap stocks can be volatile, and investors should have a long-term investment horizon to benefit from their growth potential. Before investing, it’s always important to do your own research and consult a financial advisor to understand the risks and benefits associated with midcap mutual funds.
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Frequently Asked Questions (FAQs)
Q: What are midcap mutual funds? A: Midcap mutual funds are a type of mutual fund that invests in companies with a market capitalization between $2 billion and $10 billion. These funds have historically provided higher returns than large-cap funds while carrying less risk than small-cap funds.
Q: How do midcap mutual funds work? A: Midcap mutual funds work by pooling money from multiple investors and investing in a diversified portfolio of mid-cap stocks. The fund manager uses their expertise and knowledge to select the stocks that have the potential to deliver higher returns in the long run.
Q: What are the advantages of investing in midcap mutual funds? A: Midcap mutual funds have the potential to provide higher returns than large-cap funds while carrying less risk than small-cap funds. Mid-cap companies are often at the cusp of their growth phase and have the potential to grow into large-cap companies in the future. Investing in mid-cap stocks can help diversify your portfolio and benefit from their growth potential.
Q: What are the risks associated with investing in midcap mutual funds? A: Mid-cap stocks can be volatile, and their prices can fluctuate significantly in response to market conditions. The risk of investing in midcap mutual funds is higher than large-cap funds but lower than small-cap funds. Investors should have a long-term investment horizon and a higher risk tolerance to invest in midcap mutual funds.
Q: How to select the best midcap mutual funds? A: To select the best midcap mutual funds, investors should look at factors such as past performance, expense ratio, fund manager experience, and the quality of the fund’s portfolio. It’s important to research and compare different midcap mutual funds before investing and consult a financial advisor to understand the risks and benefits associated with each fund.
Q: What is the average return of midcap mutual funds? A: The average return of midcap mutual funds can vary depending on market conditions and the performance of individual funds. Over the long term, midcap mutual funds have the potential to deliver higher returns than large-cap funds while carrying lower risk than small-cap funds. Investors should have a long-term investment horizon to benefit from the growth potential of mid-cap companies.
