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