5 Best Midcap / Small cap mutual funds that are rocking in this bull run

Top Performing mid cap mutual funds rocking now5 Best Midcap / Small cap funds that are rocking in bull run

Investors are enjoying mutual fund returns during this bull run. While there are several mid-cap / small cap mutual funds, only a few funds are doing good. Returns for the past one year from mutual funds,  might be tempting for you to invest in many funds. It is equally important for us to check the last 5 year returns for those funds, their ranking and investment strategy before investing in such funds. Which are the best mid-cap and small mutual funds that are rocking and doing good in this bull run ?

How I classified Best Midcap / Small cap funds that are rocking in bullrun?

While there are a few mid-cap / small cap mutual funds which have been performing well and beating benchmarks, we are not considering them owing to their short performance history. One example could be is Reliance small cap fund which has earned more than 150% in last 1 year. However this fund is existing only in last 3 years. Consistent performing mutual funds that have provided good returns in the last 5 year + good performance in this bullrun of last 1 year, their crisil ranking, value research ranking are some of the parameters considered in identifying these top mid-cap/small-cap funds.

Also Read: How to be successful through Mutual fund SIP investments ?

5 Best Midcap / Small cap funds that are rocking in bull run

1) HDFC Mid-cap Opportunities Fund

Best Midcap funds-HDFC Midcap opps fund

About this fund: This fund objective is to invest in mid-cap and small cap stocks and generate long term appreciation.

Fund Performance: This fund has been doing well. This fund has beaten its benchmark and provided 23% annualised returns in last 5 years. In the last one year, it gave 78% returns during this bull run. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 118,000 now. This is one of the best funds to invest for long term of 10-20 years.

2) Franklin India Smaller Companies Fund

Best Midcap funds-Franklin India Smaller cos fund

About this fund: This fund’s objective is to generate long-term capital appreciation from a portfolio of mid-cap and small-cap companies. It invests upto 75% in smaller companies.

Fund Performance: This fund has beaten its benchmark and provided 23% annualised returns in last 5 years. In the last one year, it gave 89% returns during this bull run. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 129,000 now. This is one of the good funds to invest for long term of 10 years.

3) SBI Emerging Business fund

Best Midcap funds-SBI Emerging business fund

About this fund: The scheme focusses its investments in emerging business themes, primarily based on the export / outsourcing / global opportunities of such themes. Its secondary focus is on emerging domestic investment themes.

Fund Performance: This fund has beaten its benchmark and provided 22% annualised returns in last 5 years. If we assume that the bull run has been in last 1 year, it gave 58% returns during this period. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 108,000 now. This is one of the top funds to invest for long term of 10 years.

4) ICICI Pru Value Discovery Fund

Best Midcap funds-ICICI Pru value discovery fund

About this fund: Its objective is to invest in a well-diversified portfolio of value stocks (those having attractive valuations in relation to earnings or book value or current and/or future dividends).

Fund Performance: This fund has beaten its benchmark and provided 22% annualised returns in last 5 years. If we assume that the bull run has been in last 1 year, it gave 80% returns during this period. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 118,000 now. This is one of the good funds to invest for long term of 10 years.

5) UTI Mid-cap Fund

Best Midcap funds-UTI mid-cap fund

About this fund: This fund objective is to capture opportunities by investing in mid-cap stocks.

Fund Performance: This fund has beaten its benchmark and provided 22% annualised returns in last 5 years. If we assume that the bull run has been in last 1 year, it gave 100% returns during this period. If you have invested in this fund for Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have been Rs 125,000 now. This is one of the top and best fund to invest for long term of 10 years.

Also Read: How floating rate mutual funds are better than other short term mutual funds?

Should you invest in such Mid-cap / Small cap funds now?

Majority of them is already recommended by me earlier. You can consider all these 5 funds for investing. The best way is to invest in these mutual funds through Systematic Investment Plan (SIP) where you can invest as low as Rs 500 per scheme. Investing in such funds for the long term could fetch you 12% to 13% annualized returns. If you are getting higher than this, you can celebrate a party. Comprehensive list in single table is indicated below for comparison purpose.

Best Midcap,small cap mutual funds

Conclusion: These top 5 mid-cap/small-cap funds has been rocking and provided good returns in this bull run. However, you should limit your exposure to such funds to a maximum of 50% so that you would not end-up in losses when you see bear market. These are high risk mutual funds, but provide good returns in long run. Investing in such funds through SIP would help you to grow money faster.

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Suresh
Best Midcap / Small cap funds that are rocking in bull run

81 comments

  • Darshan Singh

    Sir, Please use latest DATA rather than 11 Oct'2014 …

  • Rizwan Shaikh

    this is really helpful and I shall invest by considering this

  • Dr S K Datta

    As per the performance chart and
    your statement,explained by you, I wish to proceed for the same under the all funds.Thanks & good day to your Team.

  • archana

    This article was very helpful to understand where to invest? I am NRI and would like to invest in MFs. please clarify what benefit on tax i get by investing in mutual funds. if i come back as Resident indian, what will be tax deduction rules for mutual fund investments. this tax if any will be applicable when i sale the funds? please reply.

    • Archana, There are no seperate taxation rules for NRI’s in mutual funds. If you have MF account, start investing in them. In equity funds, if you are getting any returns/profits after 1 year, they are tax free.

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