Top 7 Best Midcap and Smallcap Mutual Funds to invest now

top and best midcap funds to invest now in 2016Top 7 Best Midcap and Smallcap Mutual Funds to invest now


Stock markets have reached peak now. Many stocks have reached a 52 week high. While all mutual funds have been performing well, mid-cap and small cap mutual funds have performed well and gave amazing returns. What are the best performing mid cap mutual funds that gave the highest returns when markets reached peak? Which are the top mid cap mutual funds which you can invest now? How are your mid cap mutual funds performing?

Top 7 Best Midcap and Smallcap Mutual Funds to invest now


These top 7 mutual funds in India have been analyzed and shortlisted based on several key parameters.

  • Picked based on highest returns received in the last 5 years.
  • Since markets have reached the peak, we have considered 6 months returns too while ranking these funds.
  • Funds, which are rated by Crisil as Rank-1, Rank-2 and Rank-3 which indicates good fundamentals for these top 7 Midcap/small cap mutual funds.
  • Value research (VRO) rated these mutual funds as 5 star, 4 star and 3 star.
  • AUM (Assets under management) > 100 Crores. This proves investor confidence among these top 5 mutual funds.

Also Read: Should you invest in Top Banking Mutual funds now in 2016?

Top#1: Franklin India Smaller Companies Fund


best midcap funds - franklin india small cos fundFund 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 first favorite mid-cap fund, which I have been included in the top 10 funds being recommended. This fund has beaten its benchmark and provided 27% 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 performed well in last 5 years and given 27% annualised return compared to NIFTY free float Midcap 100 of 14%. This fund has limited downturn when markets were volatile and when markets crashed a few months back. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 131,000. One of the best midcap/smallcap mutual fund to invest now.

Top#2: DSP BR Micro Cap fund


top midcap funds - dsp br micro cap fundFund Objective: This fund’s objective is to generate long-term capital appreciation from a portfolio of small-cap 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 27% 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 performed well in last 5 years and given 27% annualised return compared to BSE Midcap / Smallcap returns of 10%.
Even this fund performed well during volatile markets. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 138,000. One of the top midcap mutual fund one can invest at any time.

Top#3: Mirae Asset Equities Blue Chip Fund


midcap funds - mirae emerging fundFund 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 a market capitalization of at least Rs.100 Crores at the time of investment.

Fund Performance: This is another favorite mid-cap fund, which I have included in last year's top 10 funds. This fund has beaten its benchmark and provided 26% annualised returns in last 5 years.

Why to invest: This fund performed well in last 5 years and given 26% annualised return compared to NIFTY free float Midcap 100 returns of 14%. This fund is rated by Crisil as Rank-1 and Value Research Online as 5 Star. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 127,000.

Top#4: SBI Magnum Midcap fund


midcap funds - sbi magnum midcap fundFund 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 25% annualised returns in last 5 years.

Why to invest: This fund performed well in last 5 years and given 25% annualised return compared to NIFTY Midcap 400 returns of 14%. This fund is rated by Crisil as Rank-2 and Value Research Online as 4 Star. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 128,000.

Also Read: Best Tax Saving Mutual Funds (ELSS funds) to invest in 2016

Top#5: Reliance Small Cap fund


good midcap funds - reliance small cap fundFund Objective: This fund’s objective is to generate long-term capital appreciation from small-cap companies.

Fund Performance: This fund has beaten its benchmark and provided 25% annualised returns in last 5 years compared to BSE Smallcap returns of 10%.

Why to invest: This fund performed well in last 5 years and given 25% annualised returns. This fund is rated by Crisil as Rank-2 and Value Research Online as 3 Star. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 127,000.

Top#6: Franklin India Prima fund


best midcap funds - franklin india prima fundFund Objective: This mutual fund's objective is to invest in mid sized companies.

Fund Performance: This fund has beaten its benchmark and provided 24% annualised returns in last 5 years compared to NIFTY 500 of 12% returns.

Why to invest: This fund performed well in last 5 years and given 24% annualised returns. This fund is rated by Crisil as Rank-2 and Value Research Online as 5 Star. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 120,000.

Top#7: HDFC Midcap opportunities fund


top and best midcap funds - hdfc midcap opps fundFund Objective: This mutual fund's objective is to encash opportunities in MNC companies that are operating from India.

Fund Performance: This is one of my favorite mid cap fund. This fund has beaten its benchmark and provided 22% annualised returns in last 5 years compared to Nifty Free Float Midcap 100 of 14% returns.

Why to invest: This fund performed well in last 5 years and given 22% annualised returns. This fund is rated by Crisil as Rank-3 and Value Research Online as 4 Star. If you would have invested Rs 1,000 per month for 5 years through SIP, your invested value would have been Rs 60,000 and your investment would have grown to Rs 115,000. One of the good midcap mutual fund which performed well in longer run.

Also Read: Best Debt Mutual funds for low risk investors

Here is the summary of all the midcap/small cap mutual funds


List of best and top midcap funds to invest in 2016If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.

Suresh
Top 7 Best Midcap and Smallcap Mutual Funds to invest now

59 comments

  • padmaja

    Hello Sir,

    I would like to invest on small, mid cap and diversified funds rs. 1000 in each. i want to go for good return with short term goal 3-5  years. Could you pls. suggest is this is the right way to go.

    Regards,

    Padmaja.

    • Padmaja, You cannot create good money in mutual funds with 3-5 years time frame. If you still want to proceed, you can invest for atleast 5 years in HDFC Balanced fund, ICICI Balanced fund etc.,

  • swarali

    I want to invest in SIP FOR 4 funds for monthly Rs.1000/- each for 5 yrs. please give me advise which fund is best for me? and its position from last 5 yrs. plz give reply as ASAP 

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