5 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
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
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
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
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
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.
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.
If you like this article, please share this on your Facebook or Twitter. This would be a special gift which you would be giving to our blog.
Suresh
Best Midcap / Small cap funds that are rocking in bull run
- HDFC Manufacturing Fund NFO – Should you invest? - April 18, 2024
- How a 5K SIP Can Fetch You Rs 1.8 Lakhs per Month Fixed Income in Mutual Funds in 30 Years? - April 16, 2024
- Bandhan Innovation Fund NFO – Issue Details and Review - April 14, 2024
Sir, You have been very kind, replying every individual. Kindly tell me your reason for NOT recommending SIP in – SBI Small & Midcap Fund (G), SBI Pharma Fund (G), Franklin Build India Fund (G), Can Robeco Emerging Equity Fund (G), Axis Large Cap Equity Fund (G) and UTI MNC Fund(G) for better returns, in current market conditions?
Darshan, There are several funds in the market. Some are top performers, some are avg and some are worst. I cannot recommend all top performers. But I would pick-up top 5 or 10 and recommend. Among the ones you indicated, I can say Franklin Build India fund is good.
Dear Mr. Suresh,
I am an NRI and interested to invest in mutual funds and stocks, and there is a limited information is available in this region about it.Luckily I found your website and start studying all your comments for the last six months.Two months back opened a demat account.and start SIP in Franklin high groth co fund, Hdfc midcap opp fund and icici blue chip fund and doing some shares also. All are doing well .Also I invested some surplus money in BSL dynamic bond fund(2lacs).but the benefit is not interesting even compared with SIPs. So I think it may be nice to with draw (after 3 months)and invest in shares for a long goal and do some SIP of 5k as well.Please share your thoughts. May God bless you for the great service you doing for us
Thank you very much
Hussain
Dear Mr.Suresh
Hope you are fine and in good health. Earlier I had invested in mutual funds considering your advice and suggestions.
Now I wish to invest Rs 1 lakh each for myself and my spouse. Can you suggest some good funds for this proposed investment corpus? I would provide some details to you about my plan:
1. To invest Rs 1 lakh each in my name and in my wife’s name.
2. To invest as lump sum, NOT SIP.
3. To remain invested for minimum 5 years.
4. I would prefer a moderate risk profile for the two of us.
Should we divide our corpus into 2-3 or more funds ? Which group or funds will be better-large cap or mid & small cap or a combination of funds? Please suggest specific names of funds.
Awaiting your reply.
Regards
Dr.Syamal Modi
Hello Dr. Syamal Modi. Investment in lump sum in mutual funds should be done carefully. You can invest in debt funds / liquid mutual funds and do STP over a period of 10 months to 1 year to large cap mutual fund. Investing in midcap/small cap funds would be riskly for 1 year SIP
Hello Suresh,
By investing lumpsum in a mutual fund, we will lose the advantage of NAV change during the period. This is one big disadvantage of course. but apart from this, is there any other disadvantage of investing lumpsum?
Thanks
Sadhana.
Hi Sadhana, Market volatality cannot be encashed when you invest lumpsum. Beyond that if markets are at peak, you invest at higher NAV, and you may not gain much
Hello sir,
I have a target of 10 lakhs in 5 years. What should be my installment per month and should i go for Multiple sip funds or a single sip fund for the same installment amount?
Pls reply.
Hello Sir, I am new to investing. looking to start a sip with SBI SMALL AND MIDCAP FUND and MIRAE ASSET EMERGING BLUE CHIP FUND.
What is your take on this.
Shivam, I would prefer Franklin India smaller companies fund or HDFC Mid cap fund
Thanks for your precious suggestion sir.