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Investing in mid-cap mutual funds is an excellent strategy for capturing the growth potential of companies that are not too large but have substantial growth opportunities. As we step into 2024, it’s crucial to identify the best mid-cap mutual funds that can deliver robust returns while balancing risk. Below is a detailed list of the top 10 mid-cap mutual funds to consider for your portfolio this year.
1. Axis Midcap Fund
- Fund Objective: Aims to generate long-term capital appreciation by investing primarily in mid-cap companies with high growth potential.
- 1-Year Return: 23.5%
- 5-Year Return: 16.8%
- Expense Ratio: 0.50%
- Why Choose: The fund has a well-diversified portfolio, focusing on sectors such as financial services, consumer goods, and technology. It has consistently outperformed its peers and is managed by experienced professionals with a proven track record.
2. Kotak Emerging Equity Fund
- Fund Objective: Focuses on identifying high-growth mid-cap stocks with strong fundamentals and sustainable business models.
- 1-Year Return: 21.7%
- 5-Year Return: 15.9%
- Expense Ratio: 0.80%
- Why Choose: This fund employs a strong research-based approach and has a lower expense ratio, making it cost-effective. The fund manager’s focus on quality mid-caps with high earnings growth potential has led to superior performance.
3. HDFC Mid-Cap Opportunities Fund
- Fund Objective: Seeks long-term capital appreciation by investing in a mix of growth and value-oriented mid-cap stocks.
- 1-Year Return: 22.1%
- 5-Year Return: 17.2%
- Expense Ratio: 0.65%
- Why Choose: Known for its consistent performance across market cycles, this fund focuses on sectors like industrials, healthcare, and financial services. It provides a balanced approach by mixing growth-oriented stocks with value investments.
4. DSP Midcap Fund
- Fund Objective: Invests in mid-cap companies with strong earnings growth potential and competitive advantages in their respective industries.
- 1-Year Return: 20.8%
- 5-Year Return: 15.5%
- Expense Ratio: 0.70%
- Why Choose: Managed by a highly experienced team, this fund follows a disciplined investment approach, focusing on companies with solid fundamentals and growth prospects. The fund’s sector allocation includes financials, IT, and consumer staples.
5. SBI Magnum Midcap Fund
- Fund Objective: Aims for capital growth by investing in a diversified mix of mid-cap companies across various sectors.
- 1-Year Return: 19.6%
- 5-Year Return: 14.8%
- Expense Ratio: 0.75%
- Why Choose: This fund offers a balanced portfolio with a strong focus on risk management. It invests in companies that are market leaders in their niches, providing stability and growth.
6. Mirae Asset Emerging Bluechip Fund
- Fund Objective: Targets mid-cap companies with the potential to grow into large-cap entities over time.
- 1-Year Return: 24.3%
- 5-Year Return: 18.7%
- Expense Ratio: 0.45%
- Why Choose: With a focus on high-growth sectors like technology and financials, this fund has a strong track record of performance. It is ideal for investors looking for long-term growth with relatively lower volatility.
7. Invesco India Midcap Fund
- Fund Objective: Seeks long-term capital growth by investing in a well-diversified portfolio of mid-cap stocks across various sectors.
- 1-Year Return: 21.3%
- 5-Year Return: 16.3%
- Expense Ratio: 0.60%
- Why Choose: The fund’s diversified approach, combined with its focus on sustainable growth, makes it a reliable option for investors. Key sectors include consumer discretionary, financial services, and industrials.
8. L&T Midcap Fund
- Fund Objective: Invests in mid-cap companies with strong fundamentals, high growth potential, and competitive advantages.
- 1-Year Return: 20.5%
- 5-Year Return: 15.0%
- Expense Ratio: 0.70%
- Why Choose: This fund focuses on quality mid-cap stocks that have the potential for long-term wealth creation. It’s known for its rigorous stock selection process and strong research capabilities.
9. Franklin India Prima Fund
- Fund Objective: Aims for long-term capital growth by investing predominantly in mid-cap companies with high growth potential.
- 1-Year Return: 18.9%
- 5-Year Return: 14.4%
- Expense Ratio: 0.55%
- Why Choose: With a long history of strong performance, this fund offers a disciplined investment strategy that focuses on high-quality mid-cap stocks. It is well-suited for conservative investors seeking steady growth.
10. Edelweiss Mid Cap Fund
- Fund Objective: Focuses on mid-cap stocks with strong earnings visibility and potential for significant capital appreciation.
- 1-Year Return: 22.7%
- 5-Year Return: 16.7%
- Expense Ratio: 0.65%
- Why Choose: This fund uses a tactical allocation strategy, allowing it to navigate different market conditions effectively. It offers strong risk-adjusted returns with a focus on sectors like financials, IT, and healthcare.
Conclusion
Mid-cap mutual funds strike a balance between the growth potential of small caps and the stability of large caps, making them an attractive investment option in 2024. Each of these top 10 mid-cap mutual funds has demonstrated strong performance and offers unique advantages depending on your investment goals. When selecting a fund, consider factors like expense ratio, fund manager’s track record, and sector allocation to ensure it aligns with your financial objectives.
Explore more: Top 10 Best Small-Cap Mutual Funds to Invest in 2024
