With robust growth prospects, medium-size company investment generally offers a good balance between risk and return. They may appeal to growth-oriented investors worried about lesser volatility than what small-cap stocks offer. Mid-cap companies are relatively more established than small-caps but still have ample room for expansion. For this reason, mid-cap funds work for those investors who want portfolio diversification. A SIP calculator can estimate for you if you plan regular investments. With this SIP investment, you will enjoy market fluctuations to the fullest and create the possibility for wealth creation over time.
Know the top mid-cap mutual funds to invest in
These mid-cap mutual funds are excellent avenues for increasing invested wealth, which may have many benefits. Following are the top mid-cap mutual funds to invest in:
Axis Midcap Fund
Axis Midcap Fund tops the list with an AUM of ₹ 19,741.37 crores, which is designed to invest in mid-cap companies that normally have very good growth prospects. The exit load for this fund is 1.00%. It currently has a PE(Price-to-Earnings) ratios of 51.20, which shows how many investors are willing to pay for each dollar of earnings. This allows the fund to take advantage of growth in different areas while balancing potential downturns in any one sector.
Kotak Emerging Equity Fund
The fund has an AUM of ₹23,962.94 crores. It follows all the investment strategies followed by the Nifty Midcap 150-TRI and would be a good option for investors looking for mid-cap exposure. The minimum investment in this scheme is pretty low at ₹100, and an exit load of 1.00% is levied, as is usual with many such mutual funds. Moreover, with the PE ratio of 42.14, valuations are higher comparedwhich indicates strong future growth expectations.
Nippon India Growth Fund
The fund has an AUM of ₹ 13,409.61 crores and would be really good option for the investors. Moreover, the minimum investment requirement is ₹ 100 and carries an exit load of 1.00% levied. IT services and consulting also make up 7.35% of the portfolio. The remaining 34 sectors account for 64.13%, reflecting a broad approach to investment. With a P/E ratio at 37.59, this would suggest the market views its holdings’ potential earnings positively.
HDFC Midcap Opportunities Fund
The fund is quite beneficial with AUM at ₹ 35,730.69 crores, hence fairly bigger in the mid-cap category. With its minimum investment feature of ₹ 100 and an exit load of 1.00%, it is fairly accessible for investors. This fund also benchmarks against the Nifty Midcap 150-TRI, thus ensuring this captures the mid-cap stocks’ performance to the fullest. The PE ratio of 30.62 is within reasonable valuation, and its Sharpe ratio is 0.56, which means it has good returns.
DSP Midcap Fund
Another is DSP Midcap Fund, also with an AUM of ₹ 13,213.27 crores. It is available with an investment minimum of ₹ 500 and an exit load of 1.00%. The fund would always work under the Nifty Midcap 150-TRI, and try to give exposure to a well-diversified set of mid-cap stocks. From a valuation perspective, with its current PE at 36.16, it is fairly valued, whereas the Sharpe ratio, at 0.32. This diversity allows investors to benefit from various sectors
Final words
Therefore, investing in mid-cap mutual funds offers a steady growth path. Long-term investors find the best mid-cap mutual funds ideal for investment. Concentrating on the best mid cap mutual funds with a strong track record will boost your portfolio’s performance. Therefore, financial goals and risk tolerance must be considered before investment.
