Top 5 Best Mid Cap Mutual Funds to invest in India 2019

Top and Best Midcap Mutual Funds to invest in India in 2019Top 5 Best Mid Cap Mutual Funds to invest in India 2019


Mid Cap and small cap stocks have taken a huge beating in the last 1 year. Many Mid Cap and smallcap  mutual funds are not yet recovered. However, in the last 2-3 weeks there have been momentum in Mid Cap stocks. Mutual Fund managers and DIIs are focusing on Mid Cap stocks now. Mutual Fund experts believe that Mid Cap mutual funds would start picking up now with this momentum. Which are the Best Mid Cap Mutual Funds to invest in 2019 in India? Which are the Top 5 Mid Cap mutual funds that have good Crisil Rank and VRO Star Rating? In this article, I have filtered some of the Best Mutual Funds to invest in Mid Cap Segment in 2019.

Also Read: Best Mutual Funds to invest in Largecap segment in 2019

How we picked-up Top 5 Mid Cap Mutual Funds to invest in 2019 in India?


These Mid Cap mutual funds have been filtered, analyzed and shortlisted based on below key parameters.

1) These mutual funds are picked based on highest returns received in the last 5-10 years, including the years where there is stock market volatility.

2) Mutual funds that are rated by Crisil as Rank-1, Rank-2, Rank-3 and Rank-4 are picked for these top funds, list which indicates consistent performance in all market cycles.

3) Value research Online (VRO) rated these funds as 5 star, 4 star and 3 Star. Highest star rating indicates that these funds can perform well compared to its peers in various stock market cycles.

4) We have filtered funds with risk grade and return grade provided by ValueResearchOnline.

5) We have filtered them based on Mutual fund AUM (Assets under management) which have > 250 Crores. This refers that more and more investors are investing in such funds create investor confidence about the future of the fund.

6) Beta of the Mid Cap funds are < 1. Means these are less volatile.

7) Some of the funds would be a repetition from my earlier recommendations as they continue to perform well.

8) Some of the Mid Cap funds which we recommended earlier would have been categorized into diversified funds / other categories post SEBI reclassification of mutual fund schemes in April/May-2018, hence you might not see such funds in this article now. Some of the funds have been merged with the existing funds post SEBI reclassification of mutual fund schemes last year in 2018, hence past performance may or may not be relevant for them.

Best Mid Cap Mutual Funds to invest in 2019 in India


Top#1 – L&T MidCap Fund

Top 5 Best Midcap Mutual Funds to invest in India in 2019 - L&T Midcap fund

What is its investment Strategy?

To generate capital appreciation by investing primarily in Mid Cap stocks. The Scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest constituent of the Nifty Free Float Mid Cap 100 Index.

How this Fund Performing now?

This mutual fund scheme gave 23% annualized returns in the last 5 years and 25% annualized returns in the last 10 years. If you would have invested Rs 5,000 per month through SIP for 5 years, the invested value would have been Rs 3 Lakhs (Rs 5,000 x 60 months) and the value of the fund would have grown to Rs 4 Lakhs.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.8 Lakhs.

Why to invest?

This fund has been performing consistently in the last 5-10 years and gave 19% annualized return since inception. This fund has a beta of 0.86 (<1 is less volatile), means this fund is less volatile stock market fluctuations. With VRO rating as a 5 Star (5 is good and 1 is worst) and Crisil as Rank-2 (1 is good and 5 is worst), this is one of the best Mid Cap mutual funds to invest in India in 2019.

Top#2 – DSP MidCap Fund


Top 5 Best Midcap Mutual Funds to invest in India in 2019 - DSP Midcap Fund

What is its investment Strategy?

The scheme aims to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Mid Cap companies.

How this Fund Performing now?

This mutual fund scheme gave 21% annualized returns in the last 5 years and 25% annualized returns in the last 10 years. If you would have invested Rs 5,000 per month through SIP for 5 years, the invested value would have been Rs 3 Lakhs (Rs 5,000 x 60 months) and the value of the fund would have grown to Rs 3.95 Lakhs.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.55 Lakhs.

Why to invest?

This fund has been performing well and gave 25% annualized returns in the last 10 years compared to its bench BSE Mid Cap Index of 20% returns. This fund has a beta of 0.9 (<1 is less volatile), means this fund is less volatile stock market fluctuations. With VRO rating as a 4 Star (5 is good and 1 is worst) and Crisil as Rank-3 (1 is good and 5 is worst), this is one of the Top Mid Cap mutual funds to invest in India in 2019.

Top#3 – Invesco India MidCap Fund


Top 5 Best Midcap Mutual Funds to invest in India in 2019 - Invesco India midcap fund

What is its investment Strategy?

The scheme seeks to generate capital appreciation by investing predominantly in Mid Cap companies

How this Fund Performing now?

This mutual fund scheme gave 20% annualized returns in the last 5 years and 26% annualized returns in the last 10 years. If you would have invested Rs 5,000 per month through SIP for 5 years, the invested value would have been Rs 3 Lakhs (Rs 5,000 x 60 months) and the value of the fund would have grown to Rs 3.9 Lakhs.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.5 Lakhs.

Why to invest?

This fund has been performing well and gave 26% annualized returns in the last 10 years compared to its bench BSE Mid Cap Index of 18% returns. This fund has a beta of 0.85 (<1 is less volatile), means this fund is less volatile stock market fluctuations.  With VRO rating as a 4 Star (5 is good and 1 is worst) and Crisil as Rank-1 (1 is good and 5 is worst), this is one of the good Midcap mutual funds to invest in 2019.

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Top#4 – Axis MidCap Fund


Top 5 Best Midcap Mutual Funds to invest in India in 2019 - Axis midcap fund

What is its investment Strategy?

The scheme seeks to achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies.

How this Fund Performing now?

This mutual fund scheme gave 16% annualized returns in the last 3 years and 20% annualized returns in the last 5 years. If you would have invested Rs 5,000 per month through SIP for 5 years, the invested value would have been Rs 3 Lakhs (Rs 5,000 x 60 months) and the value of the fund would have grown to Rs 4 Lakhs.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.5 Lakhs.

Why to invest?

This fund has been performing well and gave 20% annualized returns in the last 5 years compared to its bench BSE Mid Cap Index of 18% returns. Even its returns since inception is very high at 17%. This fund has a beta of 0.77 (<1 is less volatile), means this fund is less volatile stock market fluctuations. With VRO rating as a 4 Star (5 is good and 1 is worst) and Crisil as Rank-1 (1 is good and 5 is worst), this is one of the best Mid Cap mutual funds to invest in 2019.

Top#5 – HDFC Mid-Cap Opportunities Fund


Top 5 Best Midcap Mutual Funds to invest in India in 2019 - HDFC midcap opps fund

What is its investment Strategy?

The scheme seeks to provide long-term capital appreciation/income by investing predominantly in Mid-Cap companies.

How this Fund Performing now?

This mutual fund scheme gave 20% annualized returns in the last 5 years and 26% annualized returns in the last 10 years. If you would have invested Rs 5,000 per month through SIP for 5 years, the invested value would have been Rs 3 Lakhs (Rs 5,000 x 60 months) and the value of the fund would have grown to Rs 3.85 Lakhs.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.45 Lakhs.

Why to invest?

This fund has been performing well and gave 26% annualized returns in the last 10 years compared to its bench BSE Mid Cap Index of 20% returns. This fund has a beta of 0.91 (<1 is less volatile), means this fund is less volatile stock market fluctuations. With VRO rating as a 4 Star (5 is good and 1 is worst) and Crisil as Rank-3 (1 is good and 5 is worst), this is one of the Top Midcap mutual funds for 2019.

Bonus Tip – Tata MidCap Growth Fund


Top 5 Best Midcap Mutual Funds to invest in India in 2019 - Tata midcap growth fund

What is its investment Strategy?

This fund invests in Mid Cap stocks in India.

How this Fund Performing now?

This mutual fund scheme gave 20% annualized returns in the last 5 years and 23% annualized returns in the last 10 years. If you would have invested Rs 5,000 per month through SIP for 5 years, the invested value would have been Rs 3 Lakhs (Rs 5,000 x 60 months) and the value of the fund would have grown to Rs 3.85 Lakhs.  Even if you would have invested Rs 1 Lakh lump sum amount 5 years back, it would have grown to Rs 2.5 Lakhs.

Why to invest?

This fund has been performing well and gave 23% annualized returns in the last 10 years compared to its bench BSE Mid Cap Index of 20% returns. This fund has a beta of 0.97 (<1 is less volatile), means this fund is less volatile stock market fluctuations.  With VRO rating as a 2 Star (5 is good and 1 is worst) and Crisil as Rank-3 (1 is good and 5 is worst), this is one of the best Mid-Cap funds to invest in India.

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Summary of Top 5 Mid Cap Mutual Funds to invest in 2019 in India


List of Top 5 Best Midcap Mutual Funds to invest in India in 2019

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Suresh

Top 5 Best Mid Cap Mutual Funds to invest in India 2019

Suresh KP

19 comments

  1. Do we need to consider Lipper Leader and / or Morning Star Ratings for Indian Mutual Funds or just Value Research Ratings are good enough?

  2. please tell me about the performance of L&T emerging business fund.I am investing in this scheme from past 2 years and yet my return in negative.Should i continue in this fund?

    1. Hi Prakash, this small cap fund was launched < 5 years back. Most of the small cap and midcap funds have not been performing well due to down trend in small cap and midcap stocks. We could see some positive movement in the last few months. It is showing positive signs. You can wait for some more time before you take the call

  3. Hi Suresh,

    I invest in both L&T Midcap and HDFC Midcap since last year, where HDFC Midcap outperform L&T. However many reasoning that huge AUM of HDFC Midcap is an obstacle for its performance in long term. Is that true? Do you see change in market dynamics affect funds with large AUM and drag it’s performance? I hold other funds such as Franklin India Smaller Companies and Kotak Standard multicap where their AUM is large as well. Should an investor worry about large AUM and invest in other better performing funds with lower AUM? Your views please.

    Regards,
    Saravana

    1. don’t worry about AUM as this is not an hurdle at all. When it is going big, fund manager anyways are pausing the investments into such funds.

  4. Dear Suresh,
    I read your post regularly to benefit from your research.
    I do NOT find ‘Axis Mutual Fund Schemes’ in your Lists of Best Schemes to invest in 2019.
    I have a regular SIP in the following Schemes:

    1. Axis Bluechip Fund (G)
    2. Axis Midcap Fund (G)

    Your comment, please

    1. Darsha, Axis midcap fund is already listed in top midcap funds in above article. You can continue to invest in that. Axis Bluechip fund is also good one, you can invest in them.

  5. Hello Suresh,

    This is a very nice article. Could you do an article on mutual fund houses that all US tax payers(as we are moving to USA this month) to invest in india.

    Other topics if possible, my suggestions are:-
    – When moving to USA, what to do with your Mutual funds – how to save taxes(as there is taxation in USA every year that we have to pay)

    – How to liquidize and where to invest when you are moving to USA or any other country?

    Thanks,
    Prisha

  6. Hello Suresh sir
    Thank you for your suggestions
    So here you proposed 5 mid cap funds to invest in 2019.
    If i have 1lk rs to invest only on mid cap
    Do you recommend to invest into thede 5 funds in equal amount?
    Or can i pick 1 or 2 randomly?
    What is your suggestions

    Thank you sir

      1. Thank you sir
        Some times its confusing as a retail investor.
        Some financial advisers recommend
        1 multicap
        1 mid cap
        1 small cap

        Thats it then invest into those 3 funds selected.
        What is your openion and strategy on the above model?
        Thank you sir

        1. What happens if such 1 single fund in each category would under perform. Hence I would fee, one should invest in atleast 2 funds from each cateogory so that one fund under performs, other one should help you to grow money. In this case you can select 2 funds each from multicap, midcap and smallcap segment totalling to 6 funds. You can distribute your SIP investments among these 6 funds and start investing.

  7. Sir, thanks for writing very good article about all type of questions and answer for every normal people have in their mind. Thanks for your time writing this blog.

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