Stock markets are volatile in the last few months. It goes up for a day and comes down for a few days. I am investing in mutual funds through SIP and could see negative returns in last 1 year. This is due to the fact that markets have moved from 26K to 24K Sensex. While mutual fund investments need to be seen from a long term perspective, there are few good Midcap/small cap mutual funds which have outperformed Benchmark now in last 1 year. These Top 5 Midcap/small cap funds are still rocking in volatile markets in 2016. Are you investing in these best Midcap / small cap mutual funds in 2016?
Also Read: Top Balanced Mutual Funds that works well in volatile markets
Top 5 Best Midcap and Smallcap Funds that are rocking in 2016
These top 5 mutual funds in India have been analyzed and shortlisted based on key parameters.
- Picked based on highest returns received in the last 5 years.
- Ranked based on last 3 to 6 months returns too. Since most of the funds gave negative returns, we have picked-up the funds where down fall was less compared to peers.
- Funds, which are rated by Crisil as Rank-1, Rank-2 and Rank-3 which indicates good fundamentals for these top 5 Midcap/small cap mutual funds.
- Value research (VRO) rated these mutual funds as 5 star and 4 star.
- AUM (Assets under management) > 100 Crores. This proves investor confidence among these top 5 mutual funds.
Top#1: Mirae Asset Equities Blue Chip Fund
Fund Objective: This fund aims to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast ₹100 Crores at the time of investment.
Fund Performance: This is my favorite mid-cap fund, which I have included in last year's top 10 SIP Mutual Funds of 2016. This fund has beaten its benchmark and provided 24.7% annualised returns in last 5 years.
Why to invest: This fund is rated by Crisil as Rank-1 and Value Research Online as 5 Star. This fund performed well in last 5 years and given 24.7% annualised return compared to BSE Midcap / Smallcap returns of 6%. Even in last 1 year under volatile markets where the majority of Midcap / small cap funds turned negative, this fund gave a return of 3%. This proves that such fund can rock even in volatile markets.
Top#2: Franklin India Smaller Companies Fund
Fund Objective: 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 was my second favorite mid-cap fund, which I have been included in the top 10 funds being recommended. This fund has beaten its benchmark and provided 23.8% annualised returns in last 5 years.
Why to invest: This fund is rated by Crisil as Rank-2 and Value Research Online as 5 Star. This fund performed well in last 5 years and given 23.8% annualised return compared to BSE Midcap / Smallcap returns of 6%. Even in last 1 year under volatile markets where the majority of Midcap / small cap funds turned negative, this fund gave a return of 1%. In the last 3 months this fund downfall was less compared to its peers. Such funds work well in volatile markets too.
Also Read: Best ways to invest lump sum in mutual funds for superior returns
Top#3: Birla SL MNC Mutual fund
Fund Objective: This mutual fund's objective is to encash opportunities in MNC companies that are operating from India.
Fund Performance: I have been neutral about this fund for some time and in some cases, I asked to stay away due to SEBI guidelines on MNC companies. This fund has beaten its benchmark and provided 23.8% annualised returns in last 5 years.
Why to invest: This fund is rated by Crisil as Rank-3 and Value Research Online Not rated yet. This fund performed well in last 5 years and given 23.8% annualised return compared to BSE Midcap / Smallcap returns of 6%. Even in last 1 year under volatile markets where the majority of Midcap / small cap funds turned negative, this fund gave a return of 4%. In the last 3 months this fund has limited downfall compared to its peers. Such top funds work well for investment even in volatile markets.
Top#4: SBI Magnum Midcap fund
Fund Objective: This fund’s objective is to generate long-term capital appreciation from a portfolio of mid-cap and small-cap companies.
Fund Performance: This fund has beaten its benchmark and provided 23.6% annualised returns in last 5 years.
Why to invest: This fund is rated by Crisil as Rank-2 and Value Research Online as 4 Star. This fund performed well in last 5 years and given 23.6% annualised return compared to BSE Midcap / Smallcap returns of 6%. Even in last 1 year under volatile markets where the majority of Midcap / small cap funds turned negative, this fund gave a return of 8%. In the last 3 months this fund has very limited downfall compared to its peers. Such good Midcap/small cap funds work well in volatile markets too.
Also Read: How does Aditya Birla Money – Myuniverse – ZIPSIP work exactly?
Top#5: Reliance Small Cap fund
Fund Objective: This fund’s objective is to generate long-term capital appreciation from small-cap companies.
Fund Performance: This fund has beaten its peers and gave 22% annualised returns in last 5 years.
Why to invest: This fund is rated by Crisil as Rank-1 and Value Research Online as 4 Star. This fund has beaten its benchmark and provided 22% annualised returns in last 5 years compared to BSE Midcap / Smallcap returns of 6%. Even in last 1 year under volatile markets where the majority of Midcap / small cap funds turned negative, this fund gave a return of 1%. Even in the last 3-6 months where stock markets have been volatile, this fund has limited downside compared to its peers. Such good Midcap/small cap funds work well in volatile markets too.
Your midcap and small cap fund is not listed above, leave a comment, I would be glad to suggest whether you need to continue or exit from such funds.
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Suresh
Top 5 Best Midcap and Smallcap Funds that are rocking in 2016
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