Top 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
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 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
Fund 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
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 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
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 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
Fund 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
Fund 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
Fund 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
If 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
- Kosamattam Finance NCD – Nov-2024 Issue – Details and Review - November 24, 2024
- Best Large Cap Mutual Funds to Invest in 2025 - November 23, 2024
- How to Balance Risk and Reward in Your Investment Portfolio - November 19, 2024
Your Investment ideas site guide me lots of knowledge about Investments in mutual funds and diversified Portfolio
thank you pukhraj
morning this is sandeep this is first time i am investing in mutuval funds, 7500 paning to invest in sip for 20 years , please suggest best one with high returns
Since you are investing for first time, you can invest in large cap funds or balanced funds like Aditya Birla SL Frontline equity fund, ICICI balanced fund and HDFC balanced funds
Hello sir,
i want to start SIP of 3k per month for 20 years. please suggest me best funds in midcap & Small cap catagory.
Hi
sip in following funds, SBI bluechip, Bsl top 100, Kotak select focus, ICICI Pru value discovery, Mirae asset emerging bluechip, Franklin smaller cos, DSP BR micro cap, Rel small cap, ICICI pru balanced, Bsl pure value, L&T India value, HDFC mid-cap opp., Should I exit any of the funds or continue to invest. Kindly advise.
good funds, stay invested
Dear Sir, I want to invest 40K in SIPs. What suggest me some 6-7 good MF with higest returns after 5 years? I can take risk but I want highest return good funds only. Thanks
hi,
I have a budget of 3K / month, suggest funds to invest
You can look in these funds. 1) Large cap – Birla SL Frontline fund / ICICI Pru focussed blue chip fund 2) Balanced – You can check HDFC Balanced Fund / ICICI Balanced fund.
Hi,
For tax saving now i am investing in NSC (Post-office), bonds which is 5 years locking period. Can you pls help me by suggest some other way of investment with minimum guarantee and with good returns for tax saving purpose?
Please suggest me a good MF on which I can invest Rs 4k to 5k per month for 20 years to accumulate my retirement fund.
I want to Invest Rs. 5000/- per month in Mutual fund for the period of 20 to 25 years. What types of Fund should i select Midcap for Largecap. Please select the best funds.
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.,
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
Birla sun life, Tata p/e fund, Hdfc, franklin
Hi Sir,
based on multiple checks, I have narrow down on following funds to invest cumbining ELSS tax relief and future goal with shared time line. Please advice if they are appropriate :-
SBI Bluechip Fund 8-10 year
Axis Long Term Equity Fund 8-10 year
Mirae Asset Emerging Bluechip Fund: 1000 8-10 year
Mirae Asset India Opportunities Fund – Regular Plan 8-10 year
motilal oswal most focused long term equity fund 8-10 year
Reliance Tax Saver (ELSS) Fund 3 to 5 years
DSP Blackrock Tax Saver Fund 3 to 5 years
Birla Sunlife Tax Relief 96 3 to 5 years
Thanks
Vishwanath
good funds. Motilal Oswal is < 5 years fund, but it is good fund. You should invest in funds which has long operating history.
Hello Suresh Sir,
I want to open 3 funds for my mother. Below is my pick :
Balanced Funds:
1. ICICI Balanced Fund. (3K/ month)
2. L&T India Prudence Fund (3K/ month)
Large Cap :
Birla Sun Life Frontline Equity Fund (G) (5K / month)
Midcap :
SBI Magnum Midcap Fund (3K)
All above funds will be for 10years
Please suggest me if I am going in right way.
Also any other funds I need to check for the same.
Regards,
Ajay
Hi Mr. Ajay,
Check once,
UTI transport and logistics fund
Why L & T MIDCAP FUND IS NOT IN THE LIST/ IT HAS ALSO GIVEN HANDSOME RETURN.
I am holding few of them from your recomend list.
Thanks for the unbiased recommendations.
Cheers
Mallikarjun
Thanks Mallikarjun
DSPbr micro cap are not accepting fresh SIP, what to do now.
Bharat, I do understand. You can invest in other funds indicated in this article.
I have retired a year back. I wish to invest part of my retirement funds in SIP and rank-1 highest return no risk mutual funds for 10 years. Kindly guide me.
I have retired a year back and wish to invest part of the money in best return rank-1 no risk mutual funds as well as in SIP for 10 years. Could you suggest the best plans for me. I already have a PPF account.
Please reply
Franklin smaller indian company returns are less than DSP BLACKROCK MICRO CAP FUND in 6mnth,1yrs and 3yr term then shd nt we consider DSP as best .? 5yr returnds are same.
Are these midcap or small cap mutula fund ?As per VR they are small cap funds.
It is smallcap fund. These are good in medium to long term Yogesh
which are the best debt funds to invest into ?
sir i recently retired from service and i am still confused in which mutual fund is best with swp facitlity as i have no other income and recetly i invested in post office scheme Rs. 25 laks for fixed return but Balance Rs. 5 lakhs i want to invest in mutual fund with good returns and with systamatic withdrawal plan
Hi Suresh Ji,
First of all Congratulations and Thank You for maintaining such a knowledgeable blogsite. Need your advice on the following
1) Is it the right time to invest in Mutual Funds (Lumpsum) as the markets are at its all time peak or should we wait for some devaluations.
2) Would you recommend investing Rs. 25000 each in the following MFs right now. Would request you to rate them as i will be investing in only 5 MFs as of now. I am looking for long term investments (may be 10 yrs time frame). Please help me in selecting the Best 5,6 out of the following
Franklin India Taxshield
Axis Long Term Equity Fund
TATA Balanced Fund
HDFC Balanced Fund
Franklin Prima plus
ICICI Prudential Dynamic Fund
Franklin India Smaller Companies Fund
ICICI Prudential Value Discovery Fund
Birla Sunlife Frontline Equity Fund
Hi Amit, Thank you for your comments. Mutual funds through SIP are investd so that we don’t time the market. We can invest every month for long term to reap the benefits of stock market. However, for lumpsum it is not right time. You can invest in debt funds now and do STP to equity fund for over 8-10 months. You can invest in these funds. However first 2 are tax saving funds, are you sure? If not invest more in large cap funds.
Hi Sir, Am investiing in some MF as per goals assigned. Can you comment on them.
1) Birla sunlife frontline equity fund
2) Franklin prima plus fund
3) Hdfc prudence mutual funds
4) Hdfc short term opportunities fund
5) ICICI flexi income mutual funds.
In fund 1 to 3 have sip of total 13000 monthly for minimum period of 7-1 and in 4 to 5 lumsum of 5 lakh each fund for minimum 3 years.
good funds stay invested
Hi Suresh
I have invested 15000 lumpsum in "Birla Sunlife Birla Sun Life Banking And Financial Services Fund" looking at the current rally in Banking sector Mutual Funds.
What is ur take on this investment. Time horizon is 1-1.5 year approx.
Thanks
Hi Mohit, This fund came 2.5 yrs back. Doing good. However invest in consistent performing fund which has atleast 5 years track record.
Sir,
I am a big fan of your blog, thanks for helping people!
I am investing in 3 MFs since 4 years @2,500/- each monthly through SIP
1) HDFC TOP 200
2) ICICI prudential focussed blue chip
3) IDFC premier equity plan A- Growth
as per current NAV, except ICICI pru. focussed clue chip remaining two are in less growth.
my plan is to keep investing for long term for my child's education (he is now 4 yrs),
so can you please advise me to continue in these or should i switch to other MF's. Also i have margin to invest 2500 rs/, pls. suggest me a fund.
thanks a lot,
Pavan
Pavan, I agree. Only ICICI focussed blue chip from your portfolio is doing good. Others are lagging behind peers. You can switch over to better funds
sir,
pls. suggest for alternative funds against HDFC top 200 & IDFC premier equity,
also suggest me another new fund to start with,
thanks
Pavan, Pls wait till Monday. I am publishing some of the top funds, you can consider few from them.
Sir,
I read your new article on 2017 funds,
as I mentioned above, can I replace 'hdfc top 200' with BSL frontline equity and
IDFC premier equity with Franklin smaller companies or with HDFC balanced fund?
pls pls advise,
thank you
Pls go ahead Pavan.
Hi Suresh,
If i want to choose DSP black rock micro cap and franklin india smaller companies fund, which is better? Already SIP is goingon for large cap,ELSS etc. So want to add small cap in portfolio..
Santosh, both are good, you can choose any one.
Dear Suresh,
I want invest 5000Per month In SIP my Age is 43 Years can you please suggest me some good funds.(Low risk)
Hi Suresh,
Can you suggest for top5 liquid funds
Nice article suresh jii… i have been investing in 5 out of 7 above mentioned via sip from last 1.5 years and getting returns around 15%..
Is investing in nps enough for the retirement life?? Around 4k per month goes into my nps acc… i have no choice to choose where it invests..
Are pension plans of hdfc icici etc… are good?? Or waste of time
Put less amounts in pension plans and more in mutual funds. You have flexibility to change in MFs and not in NPS
Suresh sir please suggest me , best sip plan .I invest 1000 rs. Per month.
Hello Sir,
I am investing in Franklin small company, UTI Mid cap and HDFC mid cap via sip since 2015 as per your advice in top 10 best fund of 2015. UTI mid cap is missing in this list. Also now i feel that DSP black rock micro cap, Mirae asset emerging blue chip fund is giving far better return than HDFC and UTI Mid cap.
Now i am having big confusion what to do. shall i switch UTI and HDFC mid cap fund to DSP black rock and Mirae emerging blue chip fund?
Please advise. If i have to keep three Small and Mid cap mutual fund in my SIP Portfolio, which three i should select for 10 year time horizon.
Thanks & regards
Rajesh
Hello sir,
Can you please reply to my query. I am investing in franklin small , HDFC mid cap and UTI mid cap since 2015 as per your best top 10 mutual fund. But now when i looks return, DSP black rock, Mirae emerging bluechip, reliance small cap etc are giving better return.Franklin small are ok. Please suggest me shall i switch UTI and HDFC mid cap to DSP black rock microcap and Mirae emerging bluechip(i will continue franklin small).My investment horizon is 10 year.
Please advise
Regards
Rajesh
Hi Rajesh, Don’t worry. The ones what you invested are good funds. These funds tend to perform differently in various market cycles. Hence you need not worry about them
Hi suresh
One question..as market is high will it be good idea to reduce SIP amount and again increase if market comes down ?or no need to do anything..just keep it constant..pls advise
keep investing. Thru SIP these risks are reduced
Hi Suresh,
Plesae guide me on lockin period and are there tax benefits if invested in Large cap, midcap or small cap funds as you suggested above??
All these are equity funds, hence there is no lock in period. You can sell anytime after you purchase. However 1% exit load applies on some of the schemes if you sell them before 1 year. Regd tax benefits, you would get any tax benefit u/s 80C. Regd returns, if you get short term capital gains within 1 year, you need to pay short term capital gains tax. If sold after 1 year, all returns are tax free
Suresh thanks for such a great analysis and finding 10 best funds from a large no of existing funds. Kindly provide a list of good smallcap stock ideas.
I hope you meant small cap mutual funds. I already posted it. Here is the link. https://myinvestmentideas.com/2016/06/best-small-cap-mutual-funds-to-invest-in-2016/
Dear Sureji,
I already started SIP (RELIANCE SMALL CAP FUND – GROWTH PLAN GROWTH ) as per ur suggestion few month back.
Good to hear that Ajit
You have done a good job for mutual fund investors. Thanks!
Hi suresh
Great piece of information again from your side. I have been started following you recently and I must say, now I am more confident than ever as far as any mutual fund discussion or investment is concerned. Thanks to your articles.
Hello Sureshji,
Very Informative article but query is that all funds are at pick so can we invest at this moment or sip is better ?
Yes Ravi. We can go for SIP as markets are at peak.
How far it is true that fund size matters for small and mid cap fund ? if so, HDFC mid cap is still performing with size
Hi Ram, Suresh may be wrong, but there are thousands and lakhs of investors who are investing in it. If there is more investments (AUM), means, many people are doing research and betting on this fund right ? Hence size matters.
Sir ,
can you please give information on bse starmf platform and how to use it using demat account?
Regards
Deep
All funds are nice .Very difficult to choose one or two.
ha ha. I know.
Suresh thanks for sharing these funds. No doubt all these funds are excellent and have given tremendous returns in the past and will continue to do so in future.
I would request you to also share list of top 10 funds including large cap, midn small cap and balance funds at this time when markets are at its peak.
Sure vivek.