5 Best Midcap Mutual Funds To Invest For Solid Returns

Analysts have over the last few months been screaming to invest in midcap stocks, given that large-cap stocks have rallied a fair bit. When economic momentum gathers steam, it's highly possible that we will see superior returns from midcaps when compared to the large-caps. Since midcap funds have not given any great returns in the last few years, we suggest that the time may just be right for them to give a handful. Here are 6 midcap stocks, with the potential to generate good returns, based on past track record, ratings of these funds and the portfolio.

Here are 5 Best Midcap Funds To Invest For Good Returns:

1. Axis Midcap Fund

If you had to invest about Rs 1 lakh a year ago, this mutual fund scheme would have given you Rs 1.17 lakhs currently. This means you would have fetched a return of 17.30 percent on an annualized basis. Rating agency Crisil has accorded a 5-star rating to the fund based on various parameters.
This is robust returns for a period of 1 year. The annualized three years returns from the scheme have been fantastic and more than 18 percent.
Investors who are looking for long-term investment, this scheme has the potential to offer very good returns. The fund is managing assets to the tune of Rs 4,140 crores, which is not really small for a largecap fund.
At the moment, the holdings in midcap stocks are almost 61 percent, with the remaining invested in largecap stocks and liquid instruments. The portfolio of the fund includes good quality stocks including the likes of City Union Bank, Info Edge, Avenue Supermarkets, Bajaj Finance, Voltas, etc.

2. Tata Mid Cap Growth Fund - Regular Plan-Growth

If you had to invest about Rs 1 lakh in this fund three years ago, it would have been worth Rs 1.38 lakhs today.
This fund has been rated 4-star by both Value Research Online and 5-star by Crisil. This is one of the best mutual fund midcap schemes to buy because of its solid portfolio, strong ratings and past track record of consistent returns.
The current NAV of the fund is Rs 148.67. The portfolio of the fund includes Bata India, PI Industries, Voltas, United Breweries, etc. A large part of the portfolio is geared towards stocks from the financial services space.
The fund at the moment has more than 98 percent of its portfolio invested in stocks. Those with a medium to long-term view can buy into the fund.

3. Kotak Emerging Equity - Growth

Kotak Emerging Equity Growth is another midcap fund that has generated good returns over a three-year time frame. About Rs 1 lakh invested in the fund three ago, is worth Rs 1.38 lakhs, giving an annualized yield of 11.57 percent.
Crisil has given a rating of four-star to the Kotak Emerging Equity - Growth. About 96 percent of the fund is invested in stocks, with 62 percent in midcaps and the remaining in large and small cap stocks.
It's important to remember while investing in midcap equity mutual funds is that the risks are much higher when compared to largecap mutual funds.
The holdings of the portfolio include Coromandel International, Supreme Industries, PI Industries, Ramco Cements and AU Small Finance Bank.

4. DSP Midcap Fund - Regular Plan-Growth

The 1-year returns from the fund is in excess of 14 percent, despite midcap stocks going nowhere in the last year. The fund size is rather large at almost Rs 7,000 crores. The scheme has almost 92 percent invested in stocks of which 17 percent is in large cap stocks, 59 percent in mid cap stocks, and a smaller component in small cap stocks. The portfolio of the fund includes names like Divis Labs, Jubilant Foodworks, City Union Bank, IPCA Labs, HDFC Bank, Exide Industries and Infosys among others. Ideally, an investor who is looking to invest for a period of around 5 years and above, should consider this fund. The risk in midcaps remains a little higher, so one has to have an appetite to take the risk.

5. Invesco India Mid Cap Fund - Growth

If you had to invest a sum of Rs 1 lakh, three years ago, it would have today grown to Rs 1.41 lakh, which is pretty good returns. If you had to do a monthly SIP of Rs 10,000 each month in the fund, for three years, your portfolio would be Rs 4.01 lakhs.
Invesco India Mid Cap Fund-Growth is another good midcap equity plan to invest in. The fund has been rated as 4-star by Crisil.
A bulk of the funds of Invesco India Mid Cap Fund-Growth is invested in good quality midcap names including the likes of Whirlpool, Coromandal International, Apollo Hospitals, Indraprastha Gas, etc.
The top 10 stocks in the portfolio form about 35 percent of the fund's portfolio. The fund currently has a net asset value of Rs 52.34.

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