The month of June saw a lot of volatility and downside in the market. Despite this, mid-cap funds saw net positive inflows 1,851.67 crore, and as of June 30, 2022, the number of folios was 91,32,054. Compared to large-cap stocks, mid-cap funds offer higher returns because they invest in stocks of mid-sized firms ranking between 101 and 250, which have a higher growth potential to become large-cap. According to Morningstar, out of mid-cap funds, 13 mid-cap funds, or 72%, based on 5-year daily rolling return data for 10 years, July 2, 2012 – July 1, 2022, S&P BSE Mid Cap TRI went ahead. Data up to July 6, 2022. This means that if investors stay invested for a long period, say more than 5 years, mid-cap funds usually provide market-beating returns. For investors with a high-risk tolerance who wants to build wealth over a long period of time, mid-cap funds have a higher risk-reward ratio as they are more risk-averse than large-cap funds. As a result, here are 3 mid-cap funds that have got 5-star ratings and have provided SIP returns of more than 30% over a span of three years.
SBI Magnum Midcap Fund
The fund is rated 4-star by Value Research and is ranked No.1. By CRISIL 2. Since its inception, the fund has given an average annualized return of 19.05 per cent and 10.90 per cent over the previous year. The assets under management (AUM) of SBI Magnum Mid Cap Fund as on June 30, 2022 was approx. 6,891.23 crore, while the Fund’s Net Asset Value (NAV) was 147.16 by 7 July 2022. The fund has given annual SIP returns of 20.68% in five years, 30.53% in three years and 25.74% in two years. The fund’s asset allocation includes the auto, capital goods, financial, textile and chemical industries. Page Industries Limited, Sheela Foam Limited, TI Financial Holdings Limited, Schaeffler India Limited and Crisil Limited are the top 5 holdings of the fund. The fund has an expense ratio of 1.03% which is higher than the category average.
PGIM India Midcap Opportunities Fund
This mid-cap fund has been rated 5-star by Value Research and CRISIL has rated it as No. in 1 category. As on June 30, 2022, PGIM India Midcap Opportunities Fund had assets under management (AUM) 5,119.07 crore, and as on July 7, 2022, the fund had a Net Asset Value (NAV) 44.7. PGIM India Midcap Opportunities Fund has given a return of 9.86 per cent last year and an average annual return of 19.02 per cent since its inception. The fund’s annual SIP returns for five years, three years and two years were 26.55 per cent, 36.53 per cent and 26.11 per cent, respectively. The top 5 holdings of the fund are ABB Limited, HDFC Bank Limited, TVS Motor Company Limited, Timken India Limited and Persistent Systems Limited. The fund’s asset allocation is spread across the capital goods, financials, automotive, healthcare and materials sectors. , The fund has a lower expense ratio of 0.45% which is lower as compared to the same category.
Quant Mid Cap Fund
Value Research has given a 5-star rating to Quant Mid Cap Fund, while CRISIL has rated it at No. As on June 30, 2022, Quant Mid Cap Fund was Direct-Growth 510.93 crore in assets under management (AUM) as on June 30, 2022, and as on July 7, 2022, the fund had a Net Asset Value (NAV) 125.04. Since its inception, Quant Mid Cap Fund Direct-Growth has earned an average return of 15.97 per cent every year, which includes 10.13 per cent over the previous year. The fund has generated annual SIP returns of 25.81% in five years, 35.92% in three years and 29.64% in two years. The fund has an expense ratio of 0.63 per cent, which is around the average in this category. The top 5 holdings of the fund are Patanjali Foods Limited, Indian Hotels Company Limited, Canara Bank, Tata Communications Limited and Container Corp. of India Limited. The fund’s asset allocation spans across the services, financials, consumer staples, energy and communications sectors.