Can you tell me how mid cap funds have performed in the Indian context over different time frames and what time frame to best consider?
Answer
Answer
The table below captures the performance of the mid cap funds for both regular and for direct funds. I have also tried to capture the returns versus the benchmark for holdings period of 1 year, 3 years and 5 years. Clearly, there is an advantage in opting for the direct route as the cost saving can be quite huge. However, buying into mid cap funds can be quite a complex task and you need to either do it carefully or better still just leave to the experts to do it for you.
Scheme Name
NAV Regular
NAV Direct
Return 1 Year (%) Regular
Return 1 Year (%) Benchmark
Return 3 Year (%) Regular
Return 3 Year (%) Benchmark
Return 5 Year (%) Regular
Return 5 Year (%) Benchmark
Aditya Birla Sun Life Mid Cap
273.63
290.18
-2.40
-2.61
6.15
7.95
6.81
7.85
Axis Midcap
39.74
43.20
13.35
-0.90
19.09
9.61
10.43
9.30
Baroda Midcap
8.72
9.24
-0.11
-0.90
7.34
9.61
-0.11
9.30
BNP Paribas Midcap
32.66
35.79
6.08
1.56
9.55
11.88
8.40
10.29
DSP Midcap Fund
57.22
60.34
10.25
-2.61
11.94
7.95
10.77
7.85
Edelweiss Mid Cap Fund
26.89
28.93
6.02
-2.61
11.38
7.95
9.04
7.85
Franklin India Prima
956.75
1,027.66
4.27
1.56
10.18
11.88
9.17
10.29
HDFC Mid-Cap Opportunities
53.49
56.73
1.63
-2.61
8.80
7.95
8.71
7.85
ICICI Prudential Midcap
94.47
100.73
0.35
1.56
9.04
11.88
7.33
10.29
IDBI Midcap Fund
10.34
11.01
-1.71
-2.61
Invesco India Mid Cap
49.91
55.65
4.50
-2.61
13.09
7.95
9.33
7.85
Kotak Emerging Equity Fund
40.19
43.55
9.39
-2.61
11.76
7.95
10.87
7.85
L&T Midcap
132.15
140.41
0.46
-2.61
10.98
7.95
10.58
7.85
Mahindra Unnati Emerging Business Yojana
9.82
10.18
6.70
-0.90
Motilal Oswal Midcap 30 Fund
26.73
28.73
11.63
-2.61
8.85
7.95
9.25
7.85
Nippon India Growth
1,138.43
1,194.80
8.13
-0.90
11.76
9.61
8.97
9.30
PGIM India Midcap Opportunities
18.09
19.23
3.91
-2.61
6.44
7.95
5.13
7.85
Quant Mid Cap Fund
55.18
56.40
-1.68
1.56
8.39
11.88
5.82
10.29
SBI Magnum Midcap
70.78
75.53
0.61
1.56
3.69
11.88
6.26
10.29
Sundaram Mid Cap Fund
459.93
479.27
1.22
-0.90
6.77
9.61
8.34
9.30
Tata Midcap Growth
140.65
149.34
7.32
-2.61
12.47
7.95
8.81
7.85
Taurus Discovery (Midcap) Fund
43.43
44.91
2.70
-2.61
12.27
7.95
9.36
7.85
UTI Mid Cap
99.93
105.71
0.94
1.56
7.02
11.88
6.26
10.29
As you would be able to see from the above table, the performance over a period of 5 years is the most reliable as 1 year and 3 year returns can be pretty misleading. That is because, mid cap stocks have longer cycles and hence they need time to actually get over the cycles and give reasonable returns on the investment. Also, mid cap funds have to be benchmarked based on the correct index otherwise you may end up showing off performance or outperformance that does not really exist.