Top 5 Best Midcap and Smallcap Funds that are rocking in 2016
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.
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
Suresh
Top 5 Best Midcap and Smallcap Funds that are rocking in 2016
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I am a 30 year old person, a raw investor. I wish to invest Rs 50,000/- p.m. Kindly help me in preparing my a balanced investment portfolio. It should have a provision of Tax Saving as well. Thanks ….AK Tyagi
Hi Sir,
I am a new investor in mutual fund of 30 yrs of age. I am looking to invest around 3-4k per month in mid cap and large cap.funds..please suggest me the best to start with..I am thinking to.invest in dsp blackrock micro cap.fund..
Thanks in advance
Vineet
Hi Vineet, You can invest in DSP BR Microcap fund, Franklin India smaller cos fund and HDFC Mid-cap opps fund etc.,
Hi
Could you please let me know your opinion on motilal most focussed mid cap 30 fund?
Hi suresh
Will you pls suggest me whether to continue my sip with this fund? Invested total of 25k till date over 8 months time.
Thanks in advance
Hi Manju, This is relatively new fund which gave 8% returns compared to benchmark index of NIFTY FREE FLOAT 100 which gave 11%. You should stay away from such funds as of now. If already invested, exit and invest in other mid-cap funds given in the article
HDFC Midcap Opportunities Fund
Kotak Emerging Equity Scheme
DSP Blackrock Micro Cap Fund
Hdfc mid cap opportunity fund
Hi Mr Suresh,
I am new to mutual funds and have recently started a SIP in Birla SL frontline equity.
Need your suggestion that should i choose a Small / Midcap fund at this point of time…
if yes then which ones i can opt for..?
Hi Mr. Suresh,
I have been a reader of your blog since a year now and based on one of your latest blog I have started investing in DSP Blackrock micro cap fund and I must say that the returns are really amazing. Could you please advise me on my current investments?
1.SBI pharma fund
2.HDFC midcap opportunities fund
3.Motilal Oswal focused multicap 35
I am 29 years of age and I am planning to invest in a large cap fund as well. Please advise if I can stay with my funds listed above and which large cap will suit me.
Thank you
You are investing in good funds.
Thank you Sir.
Could you suggest me if I should add a large cap fund to my existing portfolio and which one should I invest in?
Thanks,
Mukesh
You can invest in Birla SL Frontline, ICICI focussed blue chip fund etc.
Sir pls advice multicap funds.
Hi Sir,
Should i stay invested in ICICI prudential midcap fund?
Yes Vignesh, you can stay invested.
Hi, can you let me know your views on Principal Emerging Bluechip Fund(G). Does this look a good one in mid/small cap for long term (8-10 yrs) investment ?
Adarsh, It is good mid-cap fund. Stay invested
Dear Mr. Suresh,
Currently I m saving through LIC and PPF.
But now I want to invest through SIP.
Below is my fund requirement, can you please advice the best funds to invest in.
– after 5 years : 6 lacs
– after 10 years : 5 lacs
– after 15 years : 1 crore
Thanks,
Ashok
Start investing in large cap funds for 5 to 8 years. You can look for icici focussed blue chip fund, Birla sl frontline equity fund and UTI equity fund. For higher tenure, add hdfc mid cap opps fund and franklin india smaller cos funds etc.
Hi Sir ,
My SIP Investments are :
BSL MNC Fund – Growth – 5000 (Monthly)
Axis Mid Cap Fund – Growth – 5000 (Monthly)
DSP Blackrock Micro Cap Fund – Reg – G – 5000 (Monthly)
ICICI Prudential Value Discovery Fund Gr-GROWTH – 50000 (Lumpsum)
Motilal Oswal Most Focused Multicap 35 Fund – Regular Growth – 150000 (lumpsum)
Are the above funds ok ? I am thinking to invest for 10 years Can I continue with these funds or not ?
If not please suggest .
Regards,
Raj
Dear Suresh,
My are SIP investment
1. Birla Sun Life Equity Fund (G) – Rs 5000
2. HDFC Mid-Cap Opportunities Fund (G) – Rs 2000
3. SBI Blue Chip Fund (G) – Rs 2000
4. UTI Equity Fund – Direct Plan (G) – Rs 3000
Are these above funds are OK. My requirement is 1 Cr after 15 years.
Also I am intrested to invest 8k more, please advise which funds should i select.
Thanks
Jatinder
Good funds Jatinder stay invested
Dear Suresh,
Many Thanks for reply.
Apart from this i want to invest 8k more. could you please advise me which fund should i select.
regards,
jatinder
You can add Franklin India smaller cos fund and ICICI focussed blue chip fund
Hi Sir
What is minimum time period to invest in mid cap funds.Is five year time is enough for good returns in mid cap funds.
Any equity mutual fund you should invest atleast for 8 to 10 years Arvind. You can invest below that period, but your funds may not get give good returns
Thanks Sir
Hi Sir
My portfolio is as follows
1.ICICI Pru Focused blue chip fund-1000(Monthly)
2.Birla SL frontline equity fund-1000(Monthly)
3.Axis long term equity fund-1000(Monthly)
4.Mirae emerging blue chip fund-1000(Monthly)
5.ICICI pru value discovery fund-1000(Monthly)
My target is to got Rs. Five lacs after five years.Is I in right way.Please suggust
Hi
My portfolio is as follows 1) Large cap ICICI Pru focussd bluechip equity (G) & SBI Magnum Equity–Rs 2500/each scheme 2)Mid cap a)Mirae Asset Emerging bluechip fund & Franklin India prima fund–Rs 1500/each 3)Debt (dynamic bond—–ICICI pru long term fund (G)@ Rs 2000/pm.Total Rs 10000/pm.M Investing thru SIP for long term of 5 years. pl advice & suggest
Urs Kutung
what about sundaram midcap fund, pls advice to invest…
Dear Sir
Tell me about UTI MNC, UTI MIDCAP & CANARA EMERGING EQUITY FUND
Tell me about Uti Mnc & Canara Robeco Emerging Equity funds.
Hi…
What ur opinion about sbi small & midcap fund. It has given very high return in past.
But the fund is not listed in Crizil ranking & also unrated in Valuesearch.com.
Unrated funds are not good or what ??
Wts ur opinion on DSP Blackrock MFs? I saw that they give one of the best returns among all the MFs.
Hello sir,
Can you please advice on UTI mid cap and HDFC mid.These fund is not in your current 5 best Small & Mid cap fund list. Also when i compare UTI and HDFC mid to Mirae emerging , DSP black rock Micro, Reliance small and Birla MNC fund, these fund has given better return in 1 ,2,3,4 and 5 year .So i am little confused. Shall I change UTI and HDFC mid cap fund to these mentioned fund. IF i have to select three fund in small & mid cap category what will be your best 3 choice. My investment time is 10 year.
Please advice.
Thanks & regards
Rajesh
Rajesh, Those 2 are also good funds. I ranked only top 5 funds where they have been performing better in volatile markets.
Hi Sir,
I am relatively new to mutual funds and I have recently start investing in Axis Mid Cap Fund (G) ,Birla Sun Life MNC Fund (G) and DSP BlackRock Micro Cap Fund – Regular Plan (G) through SIP monthly . Also i have made some lump some investments in ICICI Prudential Value Discovery Fund Gr and Motilal Oswal MOSt Focused Multicap 35 Fund – Gr .
Did I put on investments in proper funds ?? Or Do I need to change my investments ?
Also what is ideal time to see better returns ?
Regards,
Raja
Dear Sir,
I want to invest through SIP in mutual fund. Can you Please suggest me the best 10 funds.
What about DSP Blackrock micro-cap fund???
This is also good fund.
Hello Sir,
I am investing in UTI mid cap, HDFC Mid cap and Franklin small companies in small/mid cap category via SIP.But currently UTI and HDFC are not there in your list of top 5 best small/mid cap fund.Also when i compare other fund in this category e.g Mirae emerging, reliance small , DSP black micro etc , these fund have given better return in 1 year,2 year and even in 5 year category. So i am little confused. Shall i switch UTI and HDFC mid cap to other better performing fund.Please suggest the best three fund in this category for SIP MF portfolio. My investment time is 10 year.
Thanks & regards
Rajesh
Hello Sir,
Can you please advise me on this.
Thanks & regards
Rohit
Rohit, what is your query?
Dear Sureshji,
Since Aug 2014, I am investing in HDFC-top 200, CAN rob eq tax saver, HDFC mid cap, HDFC bal fund and quantum long term eq fund. Now hese funds are not performing good. Please review and suggest any changes.
Also I want start rs 5000 pm for long term for my child education. Please suggest a fund.
Thanks
Vijay
HDFC Top-200 is not performing well. You can exit. Canara Robecco tax saver is also underperfromer. If you have completed 3 years lockin period, you can exit. Other 3 funds are good. Stay invested. Invest in large cap funds like Birla SL Frontline equity and ICICI Focussed blue chip funds
Dear Brother Suresh,
Kindly advice how to invest whether through sales person or through online im planning to invest in Franklin india smaller cos fund as per your advice .
Thanks
Harun.A
Harun, Open MF account with any MF broker like fundsindia or icicidirect.com. You can invest online.
Investing in
1. Axis LTE- 5000/Month
2. Franklin Tax Shield- 5000/Month
3. ICICI Tax Plan- 5000/Month
4. Franklin Flexi Cap- 5000/Month
5. HDFC Equity- 5000/Month
6. ICICI Value Discovery- 5000/Month
7. Franklin Smaller Co- 5000/Month
8. DSPBR Micro Cap- 5000/Month
Need suggestion. All investment are goal based and tagged to each goal.
I have been investing in Kotak Emerging Equity Scheme – Gr, Motilal Oswal Most Focused Long Term Fund – Gr, Religare Invesco Mid N Small Cap Fund – Gr,SBI Small & Midcap Fund – Gr and Sundaram S.M.I.L.E. Fund – Gr for past one year. Please suggest should I continue or hold my investments
Hi suresh ,
Thanks for sharing your ideas of investments with us.
I have been investing in HDFC TOP 200,HDFC Equity, ICICI BLUE Chip and ICICI Value Discovery fund from last 3 years.
Please suggest me do I require to switch from some of my funds. (speciously HDFC.)
Good funds. However HDFC Top-200 is under performer now. You can hold making any fresh investments in this. You can review and exit if possible.
IS DSP Black rock Micro cap a good fund? Please advise sir.
It is good fund
Thanks a lot for the guidance
Haven’t u skipped another good fund in the category “DSP BR Micro Cap Fund” from the list. This is a equally good fund having very good consistency.
I picked based on certain parameters. Yes even that falls after my top5 funds
Thank you.
Hi SIr,
I am investing in Franklin small, UTI mid cap and HDFC mid cap as per your best sip list since Dec 2014. But UTI mid and HDFC mid cap fund in not listed in your current best Mid & SMall cap list.
Please suggest if i can switch HDFC and UTI mid cap fund to fund listed here e.g Mirae, Reliance etc.
Which 3 fund will be best considering investment time line of 10 year.
Thanks & regards
Rohit
hi suresh ,
i had started investing sip rs 1000 in JP morgan mid and small cap last few months only , your views please
thank you
I am investing through SIP in UTI midcap fund from October 2015. I also invested Rs. 60000 in UTI midcap fund on November 2015.
Sir
I guess even you will advice to pick one of the above funds listed and I believe you have chosen Mirae assets .. For a new investor, do you advice to consider SBI Magnum over Mirae Assets considering its stable performance over the past few months of downfall … ? Thanks
What do you have to say about HDFC mid cap opportunities?
I am holding this fund in my portfolio.
This is also good fund to invest in.
icici value discovery fund, HDFC midcap opp. fund and franklin India smaller cos. plz advise.
These are also good funds to invest in.
hi sir,
i am investing in 1.hdfc balanced fund 2.axis long term equity fund 3.icici pru bluechip equity fund through sip past one yr…shall i cont the same for 5yrs?
tell me one ELLS fund for additional investment
thank you sir
Hi Suresh – Can you please advise how can I invest in SIP, can I do it online without any agent in between
i am investing in 4 out of 5 mfs mentioned above..i have missed birla sun life mnc fund.. i am investing in another 3 midcap funds.. bnp paribas midcap fund and uti midcap fund and hdfc midcap fund.. are they good Suresh jiii??
Hi. I am holding investment in sbi global emerging business fund. Should I switch to another fund or should I hold it.
How is Hdfc Mid Cap opportunities fund performing?Should I continue to invest in this fund?
This is also good fund to invest in.
Sir,y u not writing anything about SME IPO….
Unless SME IPO’s are exciting, I do not want to provide my review.
I think it is not required to invest in all, but let me the one midcap fund to invest in? I understand you have Mirae Asset in your list, but do you think SBI Magnum should be considered over Mirae Asset considering its recent performance in bad time? Thanks
Dear Mr. Suresh,
I want to invest 5K inr in SIP for say more than 5 years, which SIP should I choose to get max return. If say my risk bearing is moderate.
Thank you.
Prasant
If you are moderate risk taker, my advice is to invest in balanced funds like HDFC Balanced fund or ICICI Balanced fund
Hi Sir,
Currently I am holding following midcap and small caps funds:
1, Franklin India Smaller Companies Fund Avg Cost = 36.539 CMP = 34.723
2. HDFC Mid-Cap Opportunities Fund Avg Cost = 35.602 CMP = 32.795
3. Canara Robeco Emerging Equities Avg Cost = 59.512 CMP = 51.810
and large cap:
Birla Sun Life Top 100 Fund Avg Cost = 42.951 CMP = 38.076
Should I switch?
These are good funds, stay continued.
Suresh Garu,
Thanks for providing top 5 list to our team members to improve investing. I am investing in HDFC Mid Cap fund in SIP and I same continue or change to another mid cap fund.
You can continue Srinivas
Hello Sir,
I am investing in UTI Mid cap and HDFC Mid cap Fund (4000 each)as per your top 10 best fund in 2015 and 2016. But these two fund are not listed here.Please suggest if i have to switch these fund to Mirae (as this is the only Mid cap) mentioned here. or add Mirae fund and divide 8000 in three mid cap fund. what will be best option.
Also UTI Mid cap and UTI equity Fund manager has changed. So what we should do now.
Please suggest
Regards
Mahesh
Mahesh, don’t worry. The list what I gave now are able to perform well in volatile markets. That does not mean that the funds recommended by me earlier are not good. You should stay invested in earlier funds recommended by me
Sir, Really Appreciate your above analysis. Just as a disclosure i am holding 4 out of 5 MF mentioned above in my Core Portfolio.
CA Rajesh Poddar
Andheri West, Mumbai
Email : rajeshpoddarceo@gmail.com
Great Rajesh
Dear Suresh,
Is it advisable to go long(15 to 20 years) with small and mid caps MF?
Also, My age is 29 and wanted to create a fund for my retirement . Could you please advise a MF for a SIP of 20-25 years.
Best Regards,
Dilip
You can invest for long term. However you should balance your portfolio. Invest in large cap, mid-cap and balanced funds based on your risk appetite.
Hi sir thanks again for this blog I have 4 sip in mutualfunds details are 1. Hdfctop200 2. Hdfc mid cap 3. L&t india value fund 4.reliance growth fund these fund are better or not suggest me thanks sir
Chanchal, HDFC Top-200 is underperformer, you should hold or exit. Don’t make fresh investment. Others are good.
Respect Sir
I am regular reader of your column. I am investing in following Mutual funds through SIP. for the last one & half year. Please guide me for any corrective action in near future. I can continue SIPs for next two years.
Reliance Banking Fund- Dividend Plan
Reliance Diversified Power Sector Fund – Dividend Plan
Reliance Growth Fund- Direct Growth Plan Growth option
Reliance Growth Fund- Dividend Plan
Reliance Regular Saving Fund- Equity- Dividend Plan
Reliance Vision Fund- Dividend Plan
Regards
Vijay
Looks you are fan of Reliance. While some funds are good, some of them you should review and exit like Reliance Growth fund, Reliance vision fund and Reliance Balanced fund. Banking sector is under pressure, don’t make fresh investment into this area as of now.
Hi Mr.Suresh,
In Mid Cap Categories i have HDFC Midcap Opportunities under SIP. Unfortunately this fund has not been listed in your rankings.
In addition to this i have SIP in ICICI Pru focussed bluechip (Large Cap) and Reliance Tax Saver (ELSS).
Above 3 funds in SIP mode Rs.1000/- from 2015 Jan onwards by increasing 10% every year.
Shall continues with the above 3 funds. Please comment.
Abdul, I just gave only 5 which are performing well in volatile markets now. Funds invested by you are good.
Hi suresh,
Also consider uti mid cap fund which is rated rank -1 by crisil and 5-star by VRO.
The exit of its fund manager recently makes it less attractive for me. What is your view?
Hi Suresh,
I was researching a lot to add one mid cap to my portfolio however didn’t find an article which considered the performance in the recent volatile market. You gave it. Thanks for the article.
Am a moderately conservative risk taker. Am little confused between choosing mirae asset emerging blue chip and franklin India smaller companies fund. Which one would you suggest me? I found that mirae emerging fund is only 5years old fund which didn’t face 2008 crash so am little aligned towards franklin. Are the other parameters like beta, volatility, Sharpe ratio good for franklin?
Kindly advice. This is for 5years time horizon.
how about SBI magnum midcap?
Both mirae asset emerging blue chip or franklin india smaller companies are good. Yes I agree with your view point on Mirae fund.
I am invested in HDFC mid cap fund, Birla mid cap and UTI mid cap.
Please suggest.
These too are best mutual funds to invest now in 2016
Suresh,
What about HDFC Mid-cap Oppor. fund that you always used to suggest?
Other funds have performed well in this volatile market. Other wise, one indicated one is also top fund to invest in
Sir, I have invested through SIP in Franklin India high growth co fund since 1 yr,should i continue to it.