Mid Cap Mutual fund invests in stocks of mid-cap listed companies. ‘Cap’ here refers to market capitalization. Mid-cap companies are those whose market capitalization ranges between Rs. 500 crores to Rs. 10000 crores.
The funds invested in mid-cap companies during bull-run deliver stunning returns, and sometimes even outperform large-cap or equity diversified funds. During the bull-run, the underlying stocks tap into growth opportunities and are able to unlock their values. Though when market sentiments dip midcap funds tends to take the plunge in value.
If we look at the long-term history of mutual fund we will find that mid-cap funds have more or less outperformed large-cap funds on most of the occasions. Mid-cap funds are somewhat underfollowed in stock market compared to the following of large-cap funds. This provides a big opportunity to seek faster growth in their investments.
UTI Mid Cap Fund
The fund predominantly invests in equity and equity-related securities of mid-cap companies. It pursues a bottom-up approach and invests in companies that have a good long-term operating track record but at present are in a temporary weak phase in their business situation. The UTI Mid Cap Fund uses the top-down approach from the risk management angle.
Those investors who want to invest in medium-sized companies and are looking for tactical allocation for greater alpha should go for it.
Most of the investment of the fund is the financial services sector following by automobiles and consumer goods.
Tata Mid Cap Growth Fund
It is an open-ended equity fund investing in equity and equity-related securities. Those investors who are looking for high growth companies, especially in the mid-cap segment, should invest in Tata Mid Cap Growth Fund.
The highest allocation of this fund is in consumer nondurable companies followed by retailing, and consumer durables. Monthly average asset under management is Rs. 603.17 crores.
Edelweiss Mid Cap Fund
Though this fund invests in equity and equity-related securities, due to market conditions the funds can invest beyond the range set out. These deviations will be for a short duration only to protect the interest of unitholder.
While investing in Edelweiss Mid Cap Fund investors should understand that their principal will be high risk. And if in favour the rewards will also be high.
The scheme offers two plans growth dividend and dividend. The dividend option has two sub-options that are dividend payout and dividend reinvestment plan.
The sector-wise highest percentage of fund allocation is in finance following by pharmaceuticals and banks. Asset under management is Rs. 764.88 crores.
Invesco India Midcap Fund
Invesco India Midcap Fund is dedicated mid-cap fund and investments are made in mid-cap companies which are expected to benefit from India’s long-term economic growth. Investment is made in companies from 101st to 250th company in terms of market capitalization.
Sector-wise investment allocation is highest in Finance following by pharmaceuticals and banks. Your investment stands at moderately high risk. Asset under management is 235.12 crores.
To choose the best mid-cap mutual fund that suits you, get in contact with us for discussion with our panel of experts.
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