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Best Midcap Funds 2019 – To Look For

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Best Midcap Funds 2019

As the name says, midcap funds invest in stocks with medium market capitalizations or stocks of mid-sized companies. Over here, the word ‘cap’ refers to the size of the listed company or the market capitalization (ranging between – INR 500 crore – INR 10000 crore). The size of the company is an important criterion whilst selecting equity portfolios because depending on the company size the portfolio would have its unique set of risks and opportunities.

WHO SHOULD INVEST IN MIDCAP MUTUAL FUNDS?

Investors who are looking for growth and high-risk appetite for risks as compared to those of largecap funds should go for these funds. Apparently, mid-sized companies happen to provide good earnings and steep growth whilst being volatile on the stock-index. Investors who are ready to live with the volatility of stocks providing good returns should opt for midcap funds.

ADVANTAGES OF MIDCAP MUTUAL FUNDS

If we are considering a long-term history of mutual funds, then midcap funds have consistently performed well. In fact, the nature and trend of these funds are not likely to change that soon.

The midcap funds are relatively underfollowed in stock markets if compared with large cap funds. This provides the investor(s) with a good opportunity to seek faster growth in their investments using midcap funds.

THINGS TO CONSIDER

Although midcap funds perform well enough in bull runs, still they tend to plunge in value, especially when the market sentiment is dipping. Due to their small capital base, midcap stocks suffer from liquidity constraints.

Since, the underlying shares are characterized by limited liability and lower market capitalizations, these funds end-up following cycle of boom & dip.

RISE OF SMALL & MDCAP FUNDS

  2017 Returns
   
Sensex 27.90%
BSE 35.90%
Large Cap Funds 32.50%
Midcap Funds 45.60%
Smallcap Funds 57.90%

Source: cleartax.in

TOP 3 BEST MIDCAP FUNDS 2019

As per Gulaq methodology, here:

Fund Name
 
Axis Midcap Fund(G) – Direct Plan
Invesco India Midcap Fund(G) – Direct Plan
Tata Midcap Growth Fund(G) – Direct Plan

 

Looking for some investment advice? Hop on to www.gulaq.com and talk to the experts.

 

*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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